The Spirit Realm

Well, "Increase Incoming Spell Damage by 3%", means increasing the incoming spell damage, the "incoming spell damage" being from nukes, due to other restrictions in the spell description. Without those restrictions incoming spell damage would be from nukes or DoTs.

The line "Limit: Effect(Incoming Spell Damage allowed)" would imply the the resist adjust applies to spells which have the effect of "incoming spell damage", which (without the restrictions mentioned for malosinise) would be nukes and DoTs.

Nukes have the effect of outgoing spell damage. That clearer?