S&P 500
The S&P 500 initially tried to rally during the day on Tuesday but turned back around to form a bit of a shooting star. Ultimately, this is a market that continues to find quite a bit of volatility as we try to grind towards the 2100 level. There is a significant amount of support below though, so with that being the case I feel that this market will be very difficult to deal with. On top of that, we have a FOMC Statement during the course of the session on Wednesday, so there will be a lot of volatility and not only the US dollar, but also US indices in general. I believe that given enough time we will rally, but it would not be surprising at all to see this market drop and then only find support below.
NASDAQ 100
NASDAQ 100 fell during the day on Tuesday after initially trying to rally, but as you can see we did struggle and then drop down to the 4440 level during the day. We started the day positive, but then eventually close at the very lows of the range, so that of course in itself is a very negative sign. There is massive support all the way down to the 4400 level though, so at this point in time I’m not necessarily looking to sell the NASDAQ 100. Also, the FOMC Statement coming out during the day of course is going to cause quite a bit of volatility so really I’m not interested in trading this market until we get that announcement, and more importantly some type of daily close. I do believe that ultimately we should continue to go higher, but I’m not willing to risk any of a trading capital for such gambles.
There are several areas where we could find buyers below, so if we form some type of supportive candle I think that will simply be a sign that buyers are trying to take advantage of perceived value. At this point in time, it is going to be difficult to place a trade though.
