S&P 500
The S&P 500 rallied during the course of the session on Thursday, bouncing off of the 1880 level. This of course is a sign of support, but at the end of the day I feel we are still simply just consolidating in general, and with that I am waiting to see whether or not we get some type of resistive candle just above in order to start selling. The 2000 level above is massively resistive, so if we do break above the 1950 level, that’s where I think we are going next. On the other hand, if we get the resistive candle that I believe we will, we will more than likely fall to the 1880 handle. There is going to be volatility no matter what happens, and as a result I prefer to sell on short-term charts more than anything else at this point in time.
NASDAQ 100
The NASDAQ 100 bounced significantly at the 4130 level to turn things around and test 4300. We did see quite a bit of resistance just above there though, so having said that I think that a resistive candle in the general area that we are in right now should be a nice selling opportunity. If we break above the 4350 level, and close for the day, I believe that the market should then reach towards the 4500 level.
A pullback from here still is what I prefer to be trading, but think is going to be a short-term trading opportunity at best. The 4200 level is the beginning of significant support, so again I feel that this is more or less range trading, from a short-term trader’s type of perspective. Ultimately, I feel that there is still quite a bit of fear in the market, and with that being the case it’s only a matter of time before we start selling yet again.
