S&P 500
The S&P 500 initially fell during the course of the session on Wednesday, testing the 2080 handle for support. This is an area that has offered support several times, so the market looks as if it is ready to continue grinding higher, as we have formed so many hammers in a row. I believe that this market will continue to find buyers, and that these pullbacks are simply opportunities to pick up value. This is a market that of course has quite a bit of resistance above but should build over, given enough time. There has been quite a bit of resilience, but you also have to keep in mind that we have extended ourselves quite drastically over the last couple of months.
NASDAQ 100
The NASDAQ 100 initially fell during the course of the day on Wednesday, but turned around and ended up forming a bit of a hammer based upon the 4400 level. This is an area that needed to hold support for us to be able to bounce. I think now that if we can break above the top of the hammer, it would be a nice buying opportunity as the market should then go to the 4560 handle. There is a large amount of bullish pressure overall, and with that being the case the market should continue to go higher in my estimation. However, it’s not going to be an easy move, not with all of the various moving pieces out there right now.
If we did break down below the 4360 handle, that would be very negative, but at this point in time it’s unlikely to happen based upon what I am seeing in other indices as there seems to be a general attitude of positivity when it comes to stock markets, especially in the United States after the FOMC Statement during the Wednesday session.
