By: DailyForex.com
S&P 500
The S&P 500 initially rallied during the course of the day on Wednesday, as the 1980 level offered a bit of support. However, we did pullback to form a bit of a shooting star which is a fairly negative sign. At the 1980 level, we have previously formed a hammer for the daily candle last week, so it is going to be a bit of a fight. Ultimately, I do think that the buyers could return so we would have to break down a little bit to build up the necessary momentum to continue going higher. I think that support runs all the way down to the 1950 level, so I have no interest in selling this market and believe that it’s only a matter of time before you start buying supportive candles at lower levels, were of course a break above the top of the range for the session on Wednesday.
NASDAQ 100
The NASDAQ 100 and a slightly positive candle during the day on Wednesday, as the 4250 level offered enough support to turn things around again. Ultimately it looks as if the market will break out to the upside, and if we can clear the top of the range for the session on Wednesday, I believe that we will reach towards the 4360 handle next. I also believe that we can break above there, and if we do, that frees the market to look for the 4500 level given enough time.
Pullbacks at this point time should see plenty of support though, so even if we do break down a little bit I would be very suspicious of selling and believe that it’s only a matter of time before the buyers get involved. A couple of areas that I would look at would be the 4200 level, and the 4100 level. At this point in time, I do believe we go higher it’s just a matter of when.
