S&P 500
The S&P 500 went back and forth during the course of the session on Thursday, forming a neutral candle. Ultimately, this is a market that has plenty of support just below, as the 2120 handle has been rather supportive. With this, the market continues to be one that I believe the bullish traders will continue to flock to, as 2120 has attracted a lot of volume. Ultimately, I think we will reach towards the 2175 level above which is the top of the consolidation area, and as a result I only go long way comes to the S&P 500 moment. Even if we broke down below the 2120 handle, the 2100 level below is the ultimate “floor” as far as I can see. Regardless what happens expect to see quite a bit of choppiness.
NASDAQ 100
The NASDAQ 100 tried to rally during the course of the session on Thursday, but still sees quite a bit of resistance near the 4900 level. Ultimately, I feel that the market still has plenty of support just below, especially at the 4800 level. Because of this, I’m looking at pullbacks as potential buying opportunities, as the market has been bullish for quite some time. Recently though, we have been consolidating, so perhaps we need to do some more before we can break out to the upside and continue to go much higher. If we break above the 4900 level, the market looks to reach towards the 5000 level above, which has been my longer-term target for some time now.
With this being the case, I think that the absolute floor is the 4750 handle, so it’s not until we break down below there that we can see any real selling pressure pick up, so I still believe that longer-term the buyers will win out, especially considering that there is such a low interest-rate environment at the moment.
