S&P 500
The S&P 500 initially tried to rally during the day on Friday, but turned back around as the area above the 2000 level was a bit too resistive. That’s not overly surprising to me though, because not only is it a large, round, psychologically significant number, but there also is quite a bit of noise just above here. By doing this, we ended up turning back around to form a shooting star, and the shooting star, of course, is a very negative sign. I would not be surprised at all if this market fell from here, but there is more than enough bullish pressure underneath to turn this market around again, and then shoot even higher. The 1950 level below should continue to be the “floor” in this market, but I feel that short-term sellers will probably step into this market if we can break down below the lows of the session on Friday. On the other hand though, if we break above the top of the shooting star from Friday, that is a very bullish sign.
NASDAQ 100
The NASDAQ 100 went back and forth during the day on Friday, as it shows quite a bit of volatility. I see quite a bit of support just below at the 4280 handle, and quite a bit of resistance at the 4360 level above. Because of this, I feel that it’s probably only a matter of time before we break out to the upside though, because we have most certainly been seeing quite a bit of buying pressure. Ultimately, I believe that it is only a matter of time before that happens, as the market seems hell-bent on breaking out to the upside. The Federal Reserve looks very unlikely to raise interest rates anytime soon, and that generally will do good things for the stock market. With that being the case, I really don’t have any interest in selling this market, because even if we break down below the support, there’s just far too much noise below to be comfortable shorting.
