S&P 500
The S&P 500 initially fell during the day on Tuesday, but found enough support below to turn things around and form a hammer. This hammer suggests that we are going to continue to find buyers on dips, and that it’s only a matter of time before we break out to the upside. Because of this, I like buying this market on dips in think that eventually we will reach the 2500 level above. With that being the case, I have no interest in selling and I believe that it’s only a matter of time before the pressure builds back up. I recognize that the most recent news has been explosive in both directions, but when you look at this through the filter of the last 5 sessions, this has formed a massive hammer, and that of course is a bullish sign.
NASDAQ 100
The NASDAQ 100 has also recaptured most of the losses, and it’s only a matter of time before we break out to the upside. I believe that short-term dips will be buying opportunities, and it’s only a matter of time before we reach towards the 5800 level, and then possibly the 6000 level. Selling is not an option, because every time we pull back I think people will look at it as potential value. Ultimately, I believe that the 6000 level as well with insight, although it will probably take couple of weeks to get there at the very least. We are at high levels, but the NASDAQ 100 continues to lead the way for other indices around the world, especially its brothers and sisters in the United States. It is not until we break down below the 5500 level that I would even remotely consider selling, and at that point in time I think it would only be a matter of time before the buyers return.
