S&P 500
The S&P 500 initially tried to rally during the trading session on Wednesday but rolled over rather significantly by the end of the day. We ended up forming a bit of a shooting star, and we are sitting on support which is based upon the large, round, psychologically significant number, and of course an area that was previous resistance. The 2750 level will of course be an area where we need to pay attention to, but I think that the area below will eventually cause support. I have been short a couple of times over the last several sessions, but at this point I think it’s only a matter of time before the buyers come back into this market. I think there is plenty of support underneath, especially near the 2700 level. Alternately, if we turn around and break above the 2800 level, that should send this market much higher.
NASDAQ 100
The NASDAQ 100 initially tried to rally during the trading session as well, but also rolled over to form a shooting star. The shooting star sits on top of the 7000 handle, an area that has previously been resistive. If we break down below that level, then I think we could unwind a bit more. However, if we were to turn around and break above the 7100 level, that would be an extraordinarily strong move, and should send this market to the highs again. I think the next couple of days will be crucial, so pay enough attention is going to be crucial. I think that at this point I would be sitting on the sidelines of the NASDAQ 100, but I will certainly find the signal after a daily close it shows some signs of conviction. I will keep you informed here at Daily Forex.
