S&P 500
The S&P 500 initially tried to rally during the course of the session on Friday, but found the 2060 level to be far too resistive and therefore we ended up forming a bit of a shooting star. The shooting star sits on top of the 2040 handle, so with that we could break down below there and reach towards the 2020 handle, and perhaps the 2000 level as it is the “floor” in this market. If we break above the top of the shooting star for the session on Friday, that could be a nice buying opportunity as it would show us strength in this market overall. However, with the Federal Reserve looking likely to step away from some of the interest rate hikes for 2016, stock should continue to elevate.
NASDAQ 100
The NASDAQ 100 initially rallied during the course of the day on Friday, but we turned back around at the 4520 level, and ended up forming a shooting star. That being the case, the market looks as if it could drop from here, but I feel that the 4400 level below should be a bit of a floor in this market, and therefore I feel it’s only a matter time before the buyers return. On the other hand, if we can break above the top of the shooting star for the session on Friday, I believe that the market will continue to go higher as it would show a significant increase in momentum.
I believe that eventually this market will target the 4750 level, as it did previously at the beginning of the year. There will be a lot of noise between here and there, but I believe that the market will return too bullish pressure again and again, as the Federal Reserve steps away from tightening measures, forcing money into the stock market yet again as quantitative easing or at least dovish tones continue to push assets higher.
