S&P 500
The S&P 500 fell during the course of the day on Tuesday, but found enough support near the 1830 level to turn things back around. By doing so, we remained well within the consolidation that the market has been in for a minute now, and as a result it would not surprise me at all to see a little bit of a bounce from here. The real question would be whether or not we can hang onto the gains, as there is a lot of nervousness when it comes to the financial markets around the world right now. I think that you could try on a break above the 1870 level to start buying for a short-term move, but I think it’s only matter time before that short-term move would sell off. Ultimately, a resistant candle above would be a selling opportunity as well.
NASDAQ 100
The NASDAQ 100 went back and forth during the course of the day as well, testing the 3900 level for support. That’s a large round number which of course has a certain amount psychological significance. With that being the case, I feel that if we can break down below the 3900 level this market really could come undone. In the meantime, we very well could find ourselves bouncing towards the 4000 level and that area should now be resistance. Even if we get above there, I think there is a significant amount resistance all the way to the 4100 level as well.
Rallies should be looked at with suspicion until we get above the 4100 level, and quite frankly the markets look very nervous at this moment in time. With that being the case, I feel as if the NASDAQ 100 will follow whatever happens in Asian and European markets, so if they fall, this market will probably start falling immediately.
