S&P 500
The S&P 500 initially fell rather drastically during the course of the day on Wednesday, but found enough support just below the 1900 level to form a bit of a hammer. That being the case, the market looks as if it is ready to continue going higher, that of course is a very bullish sign. Ultimately, this is a market that should find quite a bit of buying pressure given enough time, especially if we can get above the 1950 level.
If we do get above there, the market could go all the way to the 2000 level rather quickly. Ultimately, this is a market that should continue to be volatile, but I do think that it’s only a matter of time before we break out. Pullbacks should offer value that we can take advantage of as the momentum building of this market seems to be continuing.
NASDAQ 100
The NASDAQ 100 fell rather significantly during the course of the session on Wednesday, as it looks like the market has plenty of support below. The fact that we turned back around and found a hammer being formed, suggests to me that the market should continue to go higher.
However, there is a lot of noise between here and the 4360 level, so any rally of course will have to fight all of that. I also believe that there is a significant amount of support all the way down to the 4000 level, and as a result pullback should still offer buying opportunities as people are looking for a bit of a momentum building move at that point in time.
The NASDAQ 100 does tend to mimic what we see in Europe, because so many of the tech companies in America export to that part of the world. So one tertiary clue that you can find sometimes will be the DAX or the CAC. If they go higher, generally that’s a good thing for the NASDAQ 100.
