S&P 500
The S&P 500 initially tried to rally during the course of the day on Wednesday but found the 1920 level to be a bit too resistive. The Federal Reserve had its FOMC Statement come out during the course of the day, and this ended up turning the market around completely as the Federal Reserve looks to the global economy to make its next decision. However, they also stated that they fully intend on raising interest rates gradually as economic conditions allow.
At this point though, I see quite a bit of support below, so I think it would not be a huge surprise to see some type of supportive candle between here and the 1820 handle. With this, I believe short-term traders will be attracted to selling this market, but ultimately I think it’s probably easier to buy a supportive daily candle if we get it.
NASDAQ 100
The NASDAQ 100 fell during the day on Wednesday, and essentially never even had an attempt to try to go higher. The 4100 level below should be supportive, and that support should extend all the way down to the 4000 level. The 4000 level saw quite a bit of buying previously, so I would anticipate some type of bounce in the next couple of sessions. One thing is for sure, the market looks very vulnerable at this point but the 4000 level has been very rigid and its support so far.
On a supportive candle, I might be tempted to buy this market but I would wait until we get a daily close that is supportive to do so. Short-term selling might be the best way to go if short-term charts show signs of exhaustion in the meantime. Nonetheless, one thing you can count on is quite a bit of volatility, which seems to be the theme for financial markets around the world lately.
