S&P 500
The S&P 500 initially fell during the day on Wednesday but found enough support below the 2100 level to turn things around and form a hammer. By doing so, the market looks very bullish and it looks like we are going to continue to grind our way higher. Expect quite a bit of resistance near the 2120 handle, but if we can get above there it turns into a longer-term “buy-and-hold” type of move. Pullbacks at this point in time should have plenty of support, especially at the 2080 level, and of course the 2040 level. There is no argument for selling the S&P 500 right now, and as a result I am essentially “buy only” when it comes to this marketplace. I will do so either on the aforementioned pullbacks, or break above the top of the range for the session on Wednesday.
NASDAQ 100
The NASDAQ 100 initially fell during the day on Wednesday, but found support at the 4520 level. By doing so, we ended up forming a bit of a hammer but at the end of the day we are still within the consolidation area that we have been stuck in for a couple of sessions now. This market looks like it wants to go higher, but keep in mind that there is a lot of noise above, extending all the way to the 4750 handle. I think that’s where we go eventually, but there is so much in the way of noise between here and there that it is going to be a bit of a difficult move. The S&P 500 will have an easier time of going higher at this point.
Pullbacks will be supported, and I believe that the 4440 level is essentially the “floor” right now, if the 4500 level isn’t. You away, no interest in selling and I do think that we go higher but I also think you’re going to have to earn that trade, or perhaps simply buy this market on short-term pullbacks.
