S&P 500
The S&P 500 initially fell on Tuesday, testing the 1860 handle. The 1860 handle offered quite a bit of support yet again, and we turned back around and formed a nice-looking hammer. The hammer of course is a very bullish sign and as a result I think that we will trying to grind our way higher. However, today is the FOMC Statement, and that can have a drastic effect on stock markets in America.
Ultimately, I do think that we are going higher and reaching towards the 1950 handle, but it’s likely that it will be a fight to get above there. Once we do, I feel that this market goes much higher though, as the resistance will have been broken and of course most market participants will have recognized that the momentum has shifted.
NASDAQ 100
The NASDAQ 100 had a volatile session, testing the 4150 level for support. We did get it, and ended up forming a rather supportive looking candle in my opinion. If we can break above the top of the range for the day, I feel that the NASDAQ 100 will probably try to reach towards the 4350 region. Once we break above 4360, I feel that we have the “all clear” to reach towards the 4500 level.
That’s not to say that it will be an easy move, I think it’s going to be far from it. However, we have found a massive supportive region in the neighborhood of 4000, and with that it’s likely that the market is going to try to find that as the “bottom”, so at this point in time you would have to think that the buyers would be somewhat encouraged.
In fact, pullbacks from here should be well supported and therefore I feel that a supportive candle below could be a buying opportunity as well. It is not until we break down to a fresh, new low that I’m even considering selling at this point.
