Key Levels for S&P 500 and Nasdaq Composite After Trump Defends Iran Conflict

As we moved into the afternoon trading session on Tuesday, stock market indicators, while still down across the board for the major market averages, are well off of their lows for the day. 

Meanwhile, oil prices and the Volatility Index (VIX) are off their highs for the day. 

While this suggests calmer heads are emerging, it’s also likely due to fresh reports that Iran’s military has been largely neutralized, including its navy and air force. Those comments come from President Trump, and while we would like to see a quick resolution to this conflict, we’ll look to see what happens in the next few days. Remember, it wasn’t that long ago that Trump shared the conflict could last weeks.

As the situation develops and given our comments in Tuesday’s video, we’ll note the S&P 500 is flirting with its 100-day moving average near 6,834 while the Nasdaq Composite appears to be closing in on its 200-day moving average near 22,035. We’ll look for a positive test of support for the S&P 500 and its 100-day moving average, which means closing above it on Tuesday and Wednesday. 

In terms of the Nasdaq Composite, we’ve already discussed the importance of the Morgan Stanley tech conference that is being held this week, and we’d remind you that Nvidia (NVDA)  CEO Jensen Huang will be presenting at that conference on Wednesday at 1 p.m. ET. 

Subject to Huang's comments and how the market receives those from other management teams also presenting at the conference, it's possible that we see the Nasdaq Composite test that approaching support level. While it could mean some additional downside in the near-term, a positive test would be constructive.

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At the time of publication, TheStreet Pro Portfolio was long NVDA.