S&P 500
The S&P 500 fell a bit during the day on Thursday, approaching the 2250 region. This is an area where I would expect to see some type of support, as the market will more than likely trying to bounce from here. However, this is the last trading session before the Christmas holiday, so it’s hard to believe that there will be any significant amount of volatility or volume. Because of this, we may simply grind sideways overall and do nothing in general. I do believe that given enough time we will go higher, and continue the longer-term uptrend. However, if we breakdown below the 2250 handle, it’s likely that the 2200 level below is the “bottom” of the market currently, and with that being the case even if we drop from here, I think it’s only a matter time before the buyers return and form a supportive candle that we can start buying again.
NASDAQ 100
The NASDAQ 100 fell also, dropping down to the 4900 level. The 4900 level should be supportive, and with that being the case it’s likely that the buyers will return soon. Some type of supportive candle is what I’m looking for to go long, and I might even see it on short-term charts as it should send the market higher again. Ultimately, were going to consolidate through most of the holidays in my estimation, and then eventually break out above the 5000 level once we get into January. Even if we breakdown below the 4900 level, I feel that there is more than enough support below to keep the NASDAQ 100 afloat as it is an American index, which of course has been very bullish as a group for some time now. The NASDAQ 100 had been a bit of a laggard, but now it appears that it is ready to move right along with the other indices.
