S&P 500
The S&P 500 had a slightly negative session during the day, as we drifted a bit lower and reached towards the 2700 level. The market looks likely to continue to find buyers below at the 2700 level though, so I do expect some type of rally. Ultimately, this market should continue to find plenty of buyers, and the recent breaking above the top of the shooting star from a couple of weeks ago is a good sign. Ultimately, I think we are going to consolidate just above the 2700 level, and then eventually reach towards the highs again. Otherwise, we could breakdown the 2600 where I expect to see even more support. Either way, I think the volatility is probably going to relax a bit, which is something that I think a lot of people would welcome. The losses during the day were only 0.6%, so nothing to be overly concerned about.
NASDAQ 100
The NASDAQ 100 went back and forth during the trading session on Tuesday, bouncing just above the 6700 level. There is a lot of noise just below, so I think we will continue to see some sideways action, and quite frankly that could be a good thing as the market has been so noisy and cause so many issues. I think that the collective market needs to catch his breath, and that’s a good indicator that sideways grinding is probably next. However, if we break above the top of the highs from the Friday session, then I think the market is free to go hunting the 7000 handle longer term. I do think that’s what happens, the question is whether we can hold the 6700 level in the meantime.
