S&P 500
The S&P 500 initially tried to rally during the course of the day on Thursday, but struggled at the 2060 handle. By doing so, we ended up forming a bit of a shooting star, but ultimately there is a significant amount of support just below, and as a result it looks like we are trying to find enough buying pressure in order to go long. If we can break above the top of the shooting star from the Thursday session, we should then go to the 2100 level. If we can break above that, then it becomes more or less a “buy-and-hold” type of situation. Even if we break down from here, there is going to be a lot of support all the way down to the 2000 handle in my estimation.
NASDAQ 100
The NASDAQ 100 of course it did the same thing, rallying initially during the course of the session on Thursday, but then turned right back around to form a shooting star. Ultimately, there is a massive amount of support just below, and as a result I think that sooner or later the buyers will get involved and push this market higher. If we can break above the top of the shooting star, that’s good enough for me to start going long.
Keep in mind that today’s Nonfarm Payroll Friday, and that of course will have quite a bit of volatility stock markets in general. However, I do believe that a break above the top of the shooting star from the session on Thursday is a significant enough bullish move to warrant a position to the upside. Even though we have pullback quite a bit, the reality is it is still quite healthy considering how strong the move higher had happened. I have no interest in selling this market, because quite frankly there’s just far too much in the way of noise below.
