SP 500
The S&P 500 struggled during the session on Tuesday, as US indices in general fell. We tested the 2060 level, but found enough support to turn the market back around. By doing so, the market looks as if it is ready to try to grind higher, but we may have quite a bit of volatility ahead of us. I also see support at 2040 and 2020, and most certainly at the 2000 level. I think that the only thing you can do is buy at the moment, but you have to pick your battles. I’m not ready to do so yet, we don’t have the right supportive candle. With that being the case though, I am ever diligent and watching the daily close of this market in order to get some type of supportive candle, or at least an impulsive green one in order to start going long.
NASDAQ 100
The NASDAQ 100 fell as well, and is also sitting on pretty significant support in the form of 4300. I think that the area is massively supportive because it was once resistive, and although we have fallen quite a bit over the last couple of weeks, it isn’t much in the scheme of big things when you look at the overall move from the beginning of February. I believe that the buyers are still very much interested in this marketplace, as the central banks around the world continue to offer quantitative easing. Quite frankly, we are in a situation where the stock markets are going better the worst the economy does, just simply because of all of the “free money” coming out of central banks. As long as that’s the case, you have to believe that risk assets will probably have a little bit of a boost due to central bank actions. A break above the top of the range for the Tuesday session is reason enough for me to start buying.
