S&P 500
The S&P 500 had another negative session on Wednesday, as we continue to see bearish pressure in stock markets around the world. With that being said, we broke down below the 2000 level, which of course is a bearish sign. However, there is quite a bit of noise below so it is difficult to just jump in and start selling. At this point time, I see that the 1970 level is essentially where the support starts to die out, and if we get below there I think we will fall rather drastically. On the other hand, if we can break back above the 2020 level, that would be very bullish. Between those 2 levels, and yes I realize of a very large area, there is going to be a massive amount of volatility and therefore it’s going to be difficult. Do not forget that Friday is the Nonfarm Payroll announcement, and of course that will add quite a bit of anticipation and volatility to this market. At this moment in time, I’m staying away from this index.
NASDAQ 100
The NASDAQ 100 fell during the day on Wednesday as well, bouncing significantly off of the 4400 level. In fact, this candle looks a bit like a hammer, so I think that this particular index could lead the way going forward. In other words, if it rallies, it should bring the rest of the US stock indices with it. A move above the top of the range during the day on Wednesday, and maybe even a little bit above there at the 4500 level, would be reason enough for the market to continue to go higher.
As I mentioned above, the jobs number comes out on Friday and that of course will be a major focus of the market. The FOMC Meeting Minutes that came out what necessarily anything to write home about as clarity was in exactly the Federal Reserve is concerned yet again. With fact, expect the Friday session to probably be more meaningful. As far selling is concerned, a move below the 4400 level on a daily close would be very negative.
