S&P 500
The S&P 500 went back and forth during the course of the session on Tuesday, as we formed a very noncommittal type of neutral candle. That being the case, the market turned back around to form a shooting star at the bottom of the downtrend, normally a very negative sign. At this point, I think there’s a lot of support just below though, so having said that I feel it’s only a matter time before we break down. However, that support of course keeps myself on the sidelines as far as longer-term charts are concerned, but I like the idea of shorting the market after short-term rallies. I believe that a rally that ends with a slightly resistive candle is reason enough to start selling yet again. I have no interest whatsoever in buying this market as the bearish pressure continues and stock markets around the world continue to be very negative overall.
NASDAQ 100
The NASDAQ 100 did the same thing, as the 4350 level offered more than enough resistance to keep the market down. The market should ultimately find plenty of selling opportunities between here and the 4500 level, so an exhaustive candle would be reason enough to start selling. I have no interest whatsoever in buying this market, so having said that I think that it’s only a matter of time before the sellers take over yet again.
If we did break above the 4500 level though, I feel that the market would then perhaps change its attitude overall, but I’m not looking for it to happen anytime soon. The 4000 level below is essentially the target for the longer-term traders that are negative, and I believe that we will more than likely try to do so. At this point in time, the markets around the world continue to look horrible, and the NASDAQ of course isn’t going to be any better.
