S&P 500
The S&P 500 fell during the day on Wednesday, testing the 2040 level. We did break down below it a little bit, so it looks as if we are going to grind even lower. The 2020 level below should be supportive though, so at this point it should only be a matter of time before we get the right supportive candle that we can start buying. With that, we would go long and join the massive uptrend. I believe that the 2000 level below should be essentially the “floor” in this market. Ultimately, I believe that the market will go all the way to the 2100 level given enough time, as we have had quite a strong and impulsive move recently. Given enough time, the markets will probably even break above there, after all - the Federal Reserve has walked away from some of their upcoming interest rate hikes.
NASDAQ 100
The NASDAQ 100 fell during the course of the session on Wednesday as well, slamming into the 4400 level. There is quite a bit of support just below though, and as a result it is only a matter of time before we find a supportive candle that we can start buying. With this, it’s a matter of waiting for the right signal to go long yet again, and although it looks like we will probably fall from here, I don’t have any interest in selling because I recognize that the market is inherently bullish at this point in time and of course the monetary policy of the Federal Reserve should continue to elevate and support stock indices in America.
Ultimately, I believe that this market will reach the 4500 level over the course of the next couple of weeks, and if you are patient enough you should get supportive candles on pullbacks that allow you to join that move.
