S&P 500
The S&P 500 initially fell during the course of the session on Wednesday, testing the 1880 region. We bounced from there and ended up forming a hammer, and that of course is a very bullish sign. I believe that the markets now are trying to find a reason to start going higher. Technically, if we break above the top of the hammer, this market should reach towards the 1950 handle. I don’t have any interest whatsoever in selling this market, but I also recognize we may not get a whole lot of clarity until we are done with the jobs number coming out on Friday. If we can get above the 1950 handle, I think at that point in time this market should then reach towards the 2000 level. One thing I can count on though is volatility over the next couple of sessions.
NASDAQ 100
The NASDAQ 100 fell during the course of the session on Wednesday, testing the 4100 level. This is the beginning of pretty significant support, so I feel that the market will probably find buyers below. Any type of supportive candle below is reason enough to start going long as far as I can see, just as a break above the top of the hammer from the Wednesday session is reason enough to start going long.
Just like in the S&P 500 though, I feel that the NASDAQ 100 will be greatly influenced by the jobs number on Friday, so at this point in time I think that the market may rise a bit, but it won’t really make its move until we get the Nonfarm Payroll Numbers. Once we do, we will make a decision. It’s not until we get below the 4000 level that I feel we can truly break down though, so at this point in time I still somewhat favor the upside.
