S&P 500
The S&P 500 initially fell during the trading session on Friday yet again, but we continue to find buyers underneath and we have now seen a rebound late during the Friday session. This is a very strong sign, because a large amount of orders came in late during the day, and that signifies institutional buying. The large amount of volume is indicative of the market trying to find a bottom, so I think if we can break above the top of the range for the day, the market should continue to go higher. There has been a lot of damage done, but we closed well, which is a good sign for the upcoming week. Ultimately, I think that the 2500 level is the “bottom of the trend”, and therefore if we break down below there are things get ugly and a very quick amount of time. I do believe in the uptrend, I think eventually we go looking towards the 3000 but we need more confidence building along the way.
NASDAQ 100
The NASDAQ 100 also broke down during the session, breaking below the 6200 level. We turned around to form a hammer, that’s a very bullish sign. I think that we need to go back and forth, as the 6500 level continues to attract a lot of attention in general. I think the NASDAQ 100 will rally right along with the S&P 500 and the Dow Jones 30, but it may be choppy going forward as a lot of people may have gotten spooked during this last week. Ultimately, I think that the market participants are divided into 2 camps right now: people who look at this as an opportunity to pick up value, and those who are scared.