S&P 500
The S&P 500 had a wild session during the day on Thursday as we went back and forth rather rapidly. Ultimately, this is a very neutral looking candle, and as a result I think that you can’t really take too much from the day. The best trade I see here is to simply trade whatever direction we break out of the range. In other words, if we break above the top of the range during the day on Thursday, the market could very well go higher, perhaps reaching towards the 2100 level. The market should more than likely continue to be very volatile, but I think ultimately we will probably find buyers sooner or later. If we break down below the bottom of the range for the Thursday session, it is likely that we will find plenty of support near the 1940 handle.
NASDAQ 100
The NASDAQ 100 went back and forth during the day as well, and quite frankly this looks very similar to the S&P 500. However, the easier to trade of the 2 will be to take a long position above the 4360 handle, because it would be a fresh, new high, and it gives the market a real shot at getting to the 4500 level. I believe that’s was going to happen eventually, so I’m not necessarily looking to sell this market. If we broke down below the bottom of the range in this particular market, I would probably just simply wait on the sidelines.
This is a market that is highly influenced by foreign markets as well, as so many NASDAQ companies are major exporter to of technology. With all that, the market should go higher, but the question then becomes how long will it take? You’re going to have to be very patient with this particular market, and as the volatility picks up, hopefully we will get enough momentum to finally start writing higher in a more reliable manner.
