S&P 500
The S&P 500 went back and forth during the day on Friday, as we continue to bounce around in a tight range, signified by the 2700 level. The market has formed a couple of hammers for the week, so it most certainly has been resilient. I think eventually will go looking towards the 2750 level above, and once we can clear that level, we will more likely go looking towards the 2800 level after that. I like buying short-term pullbacks, as it appears that the 2700 level underneath is the “floor” in the market. Markets have been a bit jittery as of late, but in the end, it seems to be that we are finding buyers looking for value every time we do fall, and that for me is a technically strong set up.
NASDAQ 100
The NASDAQ 100 rallied initially during the day on Friday but gave up most of the gains to turn around and form a shooting star. This of course is a very negative sign and it shows that the 7000 level continues offer significant resistance. However, this is a market that has been very strong to the upside as of late and I think that this might end up being a nice buying opportunity. In the end though, remember that it is Memorial Day today, so any trading that you see in the CFD market does not have the underlying market pushing at higher lower. In other words, this is a somewhat artificial market during the day. Longer-term though, I do think that any pullback will be looked at as value and people will be looking to take advantage of that.
