S&P 500
The S&P 500 initially fell during the course of the session, but has been in a very strong uptrend for some time now. The 2020 level below continues to offer support, and we also recognize that the 2000 level will be supportive. With this, although we saw a very negative candle for the session on Thursday, we believe that sooner or later the buyers will return so we are simply waiting to see whether or not we get a bounce or supportive candle to start taking advantage of perceived value in the S&P 500. I recognize that there is a lot of noise above, and extending all the way to the 2100 level, so I will wait to see whether or not we get a impulsive and a move to hang onto.
NASDAQ 100
The NASDAQ 100 fell during the day on Thursday as well, forming a very bearish candle. There’s quite a bit of support just below at the 4400 level though, so were waiting to see whether or not we can get some type of support there to go long. Although short-term traders may be willing to sell at this point in time, we believe that it’s only a matter time before the longer-term uptrend continues. This pullback is quite frankly needed as it has been very impulsive, and of course we are running into a significant amount of resistance above the 4500 level in general.
I think that it’s only matter time before we turned back around, and with that being said I believe that sooner or later the market will try to make a move towards the 4725 level. That is the longer-term level that this trade should go to given enough time, and that’s what I’ve been aiming for in this market for some time. I think that the 4400 level below should be essentially a “floor” for this market.
