S&P 500
The S&P 500 fell rather significantly during the course of the session on Tuesday, testing the 1900 level for support. It did find a bit of support there, so if we can get a bit of a bounce I think that this market will probably head back to the 1940 handle. It’s not necessarily ready to make a longer-term move higher until we get to the 1950 level of, and once we get above there we could be free to go all the way to the 2000 handle. At this point, do recognize that we could go lower but it is probably going to have quite a bit of noise between here and the 1860 handle, and that could be difficult to hang onto to the downside. 77, even though we had a pretty negative candle I think it’s probably be easier to go long.
NASDAQ 100
We did very much the same thing in the NASDAQ 100, and it appears that as we stopped near the 4200 level. It looks like the market is probably going to start finding support all the way down to about the 4100 handle. I don’t really want to sell this market, and I would love to see some Supportive candle or an impulsive positive candle in order to start going long. If we can break above the 4350 level, I feel that this market could then go to the 4500 handle.
Selling really isn’t much of a thought at this point, because I think that you could make a real argument for support going all the way down to the 4000 handle. Not saying that I don’t think this market can break down, I certainly do think he can, I’m just pointing out what I believe the easiest trade to take will be going forward. That being said, I would trade with smaller than usual positions.
