S&P 500
The S&P 500 fell during the day on Friday, as we continue to see this market chop around and test the 2040 level for support. We did bounce off of it a bit towards the end of the day, so that does suggest that we will see buyers reenter this market. However, I think that it will be a short-term move as we continue to go back and forth with all of the various questions out there about interest-rate hikes and of course whether or not the economy is continuing to strengthen in America. Even if we break below the 2040 handle, it’s possible that we could see quite a bit of support at the 2020 level and of course the 2000 level. At this point, I have no real interest in selling this market.
NASDAQ 100
During the day on Friday we had a very volatile session in the NASDAQ 100 as it was a bit different than the S&P 500. After all, the S&P 500 was very negative, but the NASDAQ essentially ended up slightly down at best. With this being the case, think there is still plenty of support just below, and as a result I am essentially going to be “buy only” in this market at this moment in time as well. A break above the top of the range during the session on Friday could send buyers heading back into the marketplace and continuing to push this market higher, perhaps as high as 4400. With this being the case, it is likely that we will see an attempt to break above that resistance barrier as well.
Even if we break down below the 4280 handle, I believe that there is more than enough support below to keep this market going higher over the longer term anyway, so I’m not interested in shorting this market quite yet.
