S&P 500
The S&P 500 break down a bit during the day on Tuesday, reaching down towards the 2700 level. We break down below the bottom of the shooting star for the Monday session, and if you remember the video from yesterday, I suggested that we could have a bit of a pullback. The market has recently broken above the downtrend line from the symmetrical triangle, and now it looks as if we could pull back towards that area. If we do, I anticipate seeing a lot of support in that region, and I would anticipate buyers coming in to pick up value. Overall though, I think that the market will continue to go higher for the longer-term, and that it’s only a matter of time before we get involved. The 10-year treasury markets breaking the 3.06% level has scared a lot of equities traders, but we still have recently made a “higher high”, and that means that we are still technically in and uptrend.
NASDAQ 100
The NASDAQ 100 also broke down to reach towards the 6850 handle. That’s an area that was a previous high, so it should now be supported. I also recognize the 6800-level underneath as being supportive. I think that the 7000 handle showing signs of exhaustion and resistance makes sense as it is a large come around, psychologically significant figure, but pain attention to the US dollar is probably more crucial at this point than anything else. The recent surge in volatility is probably going to be the consistent theme the summer, so I think that you will need to be either nimble, or pick up small bits and pieces to go long. I don’t have any interest in shorting, at least not quite yet.
