S&P 500
The S&P 500 fell during the course of the day on Wednesday, as the 2080 level offered far too much in the way of resistance to go forward. However, I see quite a bit of support all the way down to the 2040 level so it’s only matter of time before we get some type of supportive candle that we can start buying. If we get that, I would be a buyer as the market should then reach towards the 2100 level. I believe that the market has more than enough support below to keep from falling into a downtrend, so having said that it’s only a matter time before we build up enough momentum to finally break above the 2100 level.
NASDAQ 100
The NASDAQ 100 fell as well, as the 4400 level has offered far too much in the way of resistance. Ultimately, this is a market that has more than enough support below, and I think that it is not until we break down below the 4250 level that I can even think about going short. If we form a supportive candle between here and there, there should be a nice buying opportunity as just as a break above the 4400 level would show that the buyers have come back into the marketplace and perhaps are ready to drive higher. I think 4500 will be targeted, and it’s only a matter of time before we reach there anyway. The pullback has been nice, but it is a simple pullback, not some type of massive downtrend waiting to happen as the initial rally from the bottom and the middle of February is still very healthy, and still looks very much intact. Yes, there is a lot above that could cause quite a bit of trouble, but I think given enough time we could go to the 4575 level due to the bullish pressure that I think remains in an environment of low interest rates that looks to extend.
