S&P 500
The S&P 500 initially rallied during the session on Friday, testing the 1970 level during the session, but turned back around to form a massive shooting star. The market looks as if we could pull back from here and then reach towards the 1920 level where there is a massive amount of support. Short-term traders should continue to push this market lower considering that we closed at the very bottom of the candle, but I believe that there is a massive amount of support below that should keep this market somewhat afloat. On the other hand, we could break above the top of the shooting star, which would be an extraordinarily bullish sign and we could run to the 2000 level next.
NASDAQ 100
The NASDAQ 100 rose initially during the course of the session on Friday, but found enough resistance of the 4300 level to turn things back around and form a bit of a shooting star. However, I think that there is more than enough support below to keep this market higher. A supportive candle below would be reason to start going long, but if we break down below the 4160 level, it could send this market down to the 4000 level next. On the other hand, if we break above the top of the shooting star, the market could fight its way towards the 4500 level.
Keep in mind that the NASDAQ 100 tends to be very sensitive to what’s going on in the rest of the world, as so many of the technology companies out of the United States export to various parts the world such as Europe, Asia, and South America. With that, pay attention to the various stock indices around the world in order to get an idea as to where this market could go next.
