S&P 500
The S&P 500 had a slightly positive day on Thursday after initially dropping down to the 1840 level. By testing that area and then turning things around and testing the 1890 level, it conveys how much inconclusive pressure that we have in both directions right now. The market seems to be completely lost as far as direction, as we continue to grind away towards the downside. At this point in time, the only real question to ask is whether or not the support below can withstand all of the sustained pressure. So far, it has. However, it is likely that if this keeps up we will finally break below.
At this point in time, I prefer to sell resistive candles above as it shows buyers struggling to hang onto gains. At this point, that’s one of the few clear-cut signals that we could get. Beyond that, I am probably going to stay on the sidelines for the next session or two.
NASDAQ 100
The NASDAQ 100 seems to be hugging the 4150 level, and as a result it looks as if the market will probably return to that level if we stretch out too far. Right now, looks like the short-term trading opportunities will be selling at the 4200 level, and buying at the 4100 level. It’s not that we can break out of that area, but on a Friday and with all of the sideways action, it’s very likely that we will continue to do more of the same that we have seen over the last couple of sessions.
If we did rally from here, even above the 4200 level, I’m simply looking for resistive candle between here and the 4400 level to start selling again as the market is bearish for a reason, and that’s a complete lack of confidence in general.
