Guest post by INO.com

The June NASDAQ 100 closed lower on Friday following a report showing the economy contracted during the first quarter for the second straight year. The second estimate of gross domestic product showed the economy shrank at an 0.7% annual pace during the first three months of the year versus a 0.2% growth estimated previously.

The low-range close sets the stage for a steady to lower opening when Monday’s night session begins trading. Multiple closes below the 20-day moving average crossing at 4473.63 would confirm that a short-term top has been posted while opening the door for additional weakness near-term. If June extends the rally off May’s low, April’s high crossing at 4555.50 is the next upside target. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. First resistance is April’s high crossing at 4555.50. Second resistance is monthly resistance crossing at 4884.00. First support is the 20-day moving average crossing at 4473.63. Second support is May’s low crossing at 4332.50.

The June S&P 500 closed lower on Friday and below the 20-day moving average crossing at 2108.18. The low-range close sets the stage for a steady to lower opening when Friday’s night session begins trading. Stochastics and the RSI have turned neutral to bearish signaling that sideways to lower prices are possible near-term. Closes below Tuesday’s low crossing at 2096.20 would confirm that a short-term top has been posted while opening the door for additional weakness near-term. If the June S&P 500 resumes the multi-year rally into uncharted territory, upside targets will be hard to project. First resistance is last Tuesday’s high crossing at 2133.40. Second resistance is unknown. First support is Tuesday’s low crossing at 2096.20. Second support is May’s low crossing at 2057.70.

The Dow closed lower on Friday as it extended this week’s decline. The low-range close sets the stage for a steady to lower opening on Monday. Stochastics and the RSI are neutral to bearish signaling that sideways to lower prices are possible near-term. If the Dow extends this week’s decline, the reaction low crossing at 17,924.80 is the next downside target. Closes above the 10-day moving average crossing at 18,202.38 would temper the near-term bearish outlook. First resistance is May’s high crossing at 18,351.36. Second resistance is unknown. First support is the reaction low crossing at 17,924.80. Second support is May’s low crossing at 17,733.12.