The S&P 500 fell a bit during the trading session on Monday, drifting down towards the 2900 level. However, I see the 20 EMA underneath offering a little bit of support, while we also have an uptrend line underneath as well. I believe that the market has plenty of uptrend lines underneath as well that should continue to be supportive. Because of this, I think that we could see a bit of noise, and perhaps even a bit of value building on a drift lower. I’m not ready to start selling at this point, but I do recognize that we could go lower from here. One thing is for sure, the market does have a lot to worry about, not the least of which will be the expansion of trade tariffs by the Americans against the Chinese who now are talking about not even sitting down to talk about trade.
The NASDAQ 100 also fell during the day, testing the uptrend line underneath the 7500 level again. Ultimately, this is a market that I think will continue to try to rally, but if we break down below that uptrend line, that could change things rather quickly and send this market down to the 7250 level. I think that the market continues to be very tenuous, and the latest potential swing high is much lower than the one before it. However, we have a lot of support underneath so I’m not that worried about it quite yet. The uptrend line has been reasonably reliable, but we need some type of good news to send the market higher at this point. People still worry about the situation between the Americans and the Chinese, and that will continue to drag the markets more than anything else. I suspect we need a couple of days of base building.