S&P 500
The S&P 500 fell rather significantly during the day on Monday, as the stock markets continue to fall around the world. We did get a bit of a bounce towards the end of the day, somewhere near the 1820 handle. This is an area that offered support in the past, and as a result it’s more than likely that we will continue to see short-term bounces that it sold off yet again. The question then becomes whether or not we can even break down below the 1800 level, which leads the way to much lower levels. I don’t really have any interest in buying this market, because there is so much in the way of negativity at the moment. I think that rallies that show signs of exhaustion will be the way to go when it comes to selling the S&P 500.
NASDAQ 100
If the S&P 500 looks bad, the NASDAQ 100 looks absolutely horrific. The 3900 level offered a bit of support, as we bounced from there, but at the end of the day it more than likely will get broken as we continue to fall. Once we do, the market should then go down to the 3500 level. Rallies at this point in time should continue to be selling opportunities and as a result resistive candles above should be sold going forward.
Quite frankly, the world is seeing quite a bit of selling pressure in the world stock markets, and that means that we will more than likely see the NASDAQ 100 fall rather significantly as the market tends to be very significant to international stock markets. I have no interest whatsoever in buying this market, and with that I am simply looking for selling opportunities on not only break down below the aforementioned 3900 level, but also on rallies that show signs of exhaustion going forward as the market certainly looks absolutely shattered.
