SP 500
The S&P 500 as you can see initially tried to rally during the day on Thursday but turned around to break down significantly below the 2700 level. As I record this, we have broken through a significant support, and it’s likely that we will continue to go lower. This is predicated upon several different things, but the biggest culprit is probably the terrace that the United States looks to put tariffs on steel and aluminum. This was especially damaging to the overall index, while steel companies did quite well. Ultimately, this is a market that should continue to be negative over the next couple of sessions, but I think that eventually we will find buyers. I don’t think this is the beginning of some type of melt down, just that perhaps traders are a bit cautious. Longer-term, I believe that the bottom of the uptrend is closer to the 2500 level. Short-term trading benefits the seller, but eventually I expect to see a daily supportive candle that I can serve buying.
NASDAQ 100
The NASDAQ 100 reach down to the 6700 level, an area that is massively supportive. I think that we could break down below there though, and if we do we will probably drift down towards the 6500 level. It’s not until we break down below the 6300 level that I think were in serious threat of a meltdown, and I think that given enough time the market will calm down after this surprise announcement of tariffs. I believe that given enough time we should see value hunters come into this market place, and I am more than willing to start buying when they do. In the short term, if we break down below the 6680 handle, I think that the market will continue to drift toward 6500.
