S&P 500
The S&P 500 fell significantly during the course of the session on Friday, testing the 2050 handle. We had enough support there to turn the market back around though, as we ended up forming a hammer. With this being the case, the market looks as if we are going to continue to go higher, but it might take a minute as there has been quite a bit of volatility recently. However, the fact that we formed a massive hammer like candle tells me that the buyers will more than likely return given enough time. I also recognize that the 2040 handle below is massively supportive, so with that being the case I am looking to buy this market off of shorter-term charts in order to take advantage of what has been a very bullish market. We may have to build up enough momentum to go higher, but I do think we will eventually.
NASDAQ 100
The NASDAQ 100 fell significantly during the course of the session on Friday, but you can see that we found support right where we needed to find it, near the 4320 handle. Because of this, I believe it’s only a matter of time before we do get a candle that I can start buying, but at this point time it appears that the NASDAQ certainly looks as if it wants to continue going higher. I don’t have any interest in selling, because I think there is more than enough support below to keep this market afloat.
It appears that the Federal Reserve is likely to keep interest-rate somewhat flexible going forward, and with that being the case it should show itself in the stock markets. The NASDAQ has been sold off rather drastically though, so I’m going to wait until I see a daily candle that tells me it’s time to start buying. Right now I do not have it so I’m on the sidelines when it comes to the NASDAQ 100.
