S&P 500
The S&P 500 went back and forth during the course of the day on Thursday, bouncing off the 1900 level, and then testing the 1930 level. The fact that we had a lot of volatility isn’t much of a surprise, after all today is the Nonfarm Payroll Friday session, and of course that will have a major influence on this market. With that being the case, I think that once we break above the 1950 level, the buyers will be firmly in control. As far selling is concerned, I have a hard time believing that this market is going to break down below the 1860 level anytime soon. I think there’s far too much in the way of “value hunting” just below, so I am a bit more apt to go long in this market, but you would not be blamed it all for staying out of it today.
NASDAQ 100
You can say much of the same for the NASDAQ 100 which had a fairly neutral candle. I believe that the 4100 level begins a significant amount of support all the way down to the 4000 level. With that looking like the case at hand, I believe that the buyers will eventually return, and I actually look for pullbacks as opportunities to start going long again. The level below has been rather supportive, and of course reliable. The market has been oversold for some time so at this point in time it makes sense that perhaps more value hunting is going on over here as well. I recognize that there is a major barrier at the 4350 level to deal with, so I think that any move higher has to be looked at as a simple short-term rally to take advantage of and nothing beyond that.
