S&P 500
The S&P 500 has initially tried to rally a bit during the session on Wednesday, but as the FOMC Meeting Minutes came out, the market rolled over and break down below the 2700 level. By doing so, the market looks likely to drift a little bit lower, but I think there’s plenty of support underneath that should continue to keep this market somewhat afloat. I think the market will struggle to break down below the 2600 level, so I think that it’s only a matter of time before the buyers will come back. I believe that the 2600 level is going to be a significant support level, and I think that the eventually it’s time to start buying again. However, I think at this point were probably going to see an opportunity to pick up value if you are patient enough.
NASDAQ 100
The NASDAQ 100 initially tried to rally during the trading session on Wednesday as well, but as the FOMC Meeting Minutes came out, we sold off over here as well. We ended up forming a shooting star, which of course is a negative sign. I think there is supportive action to be found at the 6700 level, and at this point I think that the market will probably bounce from there. However, if we were to break down below there, the market will probably find support at both the 6600-level underneath, and then the 6500 level which I think is much more structurally important. At this point, I’m waiting for an opportunity to pick up value, which may present itself rather soon. I think that the markets will eventually find reason enough to go higher, so I suggest that perhaps waiting on this pullback to offer value is the way to go. If we break the top of the shooting star for the day, that would also be a very bullish sign.
