S&P 500
The S&P 500 initially tried to rally during the day on Thursday but struggled and turned back around to fall well below the 2100 level. That being the case, the market looks as if it is reaching towards the 2080 handle. That’s an area that should show quite a bit of support though, but the fact that we closed the very bottom of the range suggests that we will have to be very careful going long at this point. A supportive candle could be used to start going long, but I prefer to see that has a daily close and not just at the first hint of positivity. Because of this, I’m going to be cautious but I am cautiously optimistic as I think there is plenty of support all the way down to the 2040 handle.
NASDAQ 100
The NASDAQ 100 also tried to rally but found the 4560 level be far too resistive, and then turned right back around to form a relatively negative candle. This being the case, the market looks as if it is going to try to push itself back down to the 4440 handle, but I think there’s plenty of support down there to turn things back around, and offer a buying opportunity. A supportive candle on a daily close would be enough, at least at this point in time, to just get me to start buying this market again. I have no interest in selling the NASDAQ 100, and I believe the 4400 level is essentially the “floor” in this marketplace.
In fact, I believe that this will be one of the better performing markets over the longer term, but I also recognize that there is a lot of noise above that could cause a bit of trouble. I do believe that we are going to fight and grind our way to the 4725 handle over the longer term, and that buying on the dips will be the way to go.
