Volatility Clears 20 Level

Wall Street was choppy on Tuesday with a mixed result as rising Treasury yields weighed on Tech, while gains in the Financial and Energy sectors helped limit the damage in the broader market. Volatility spiked above a key level of resistance for the first time since early October, but held, as investors stayed cautious during the holiday shortened week.

The Nasdaq closed at 15,775 (-0.5%) after testing a morning low of 15,601. Prior and upper support from earlier this month at 16,750-16,600 was tripped but held. A move below the latter would likely suggest an ongoing fade towards 15,500-15,350.

The Russell 2000 ended at 2,327 (-0.2%) with the session low hitting 2,303. Upper support from late October at 2,325-2,300 was breached but held. A drop below the latter would indicate additional weakness towards 2,275-2,250 and the 50-day moving average. Below is a chart of the IWM.

The S&P 500 tested a low of 4,652 while settling slightly higher at 4,692 (+0.2%). Near-term and upper support at 4,675-4,650 was violated but held. A close below the latter would be an bearish development with downside risk towards 4,625-4,600.

The Dow was up for the second-straight session after tapping a high of 35,841 before finishing at 35,813 (+0.6%). Current and lower resistance at 35,750-36,000 was reclaimed. A close above the latter would signal additional upside towards 36,250-36,500.