S&P 500
The S&P 500 fell significantly during the course of the day on Monday as traders continue to show signs of concern. Having said that though, I do see that there is a significant amount of support just below so I believe that at one point or another we will see buyers trying to push this market back to the upside. A supportive candle would be reason enough for me to start buying, but at this point in time I am very hesitant to get involved as the very least that I can get out of this chart is that it is going to be very volatile, choppy, and dangerous over the next several sessions as we try to determine the direction of the next move in this market.
NASDAQ 100
The NASDAQ 100 fell as well, and closed out at the bottom of the range for the session on Monday, and that of course is a very negative sign. However, I do see a reasonable amount of support at the 4150 level, so I am a bit hesitant to sell at this point in time although I think that we will probably drift a little bit lower.
Look for the NASDAQ 100 to follow most of the stock markets around the world, and if we rise during the day the NASDAQ 100 could find itself rallying. However, if we break down in other markets around the world, the NASDAQ 100 will more than likely follow that as well, and trying to reach back towards the 4000 handle. The 4000 handle was of course a large, round, psychologically significant number, but it is also supportive based upon previous action as well. With that being said, I believe that the short-term selling will probably continue, but sooner or later were going to have a serious fight on our hands.
