S&P 500
The S&P 500 has fallen rather hard during the day on Monday as concerns over trade tariffs continue to be a major issue. Because of this, there has been a lot of struggling with risk appetite assets, but we have pulled back to test the 2700 level, an area that has significant support and importance longer term. I believe that the market will eventually bounce from here, and on the hourly chart we are starting to see that it is doing exactly that. We formed a perfect camera just above the psychologically important figure, and now have started to bounce again after testing that level twice over the last couple of hours. It is because of this that I believe we will bounce towards the 2740 handle, perhaps even 2750. If we can break above that level, then the market goes higher. Otherwise, if we break down below the 2700 level the market will unwind even further.
NASDAQ 100
Just like the S&P 500, the NASDAQ 100 has broken down a bit to test a major support level. There is significant support at the 7000 handle, so by bounce from here, it would simply be the market fulfilling its technical attitude. If we can bounce from here, I think that the market then goes to the 7100 level, and that eventually the 7200 level. However, if we are to break down to a fresh, new low, I think the market probably goes back down to the 6900 level. Overall, I believe that a lot of what we are seeing is in reaction to the trade tariffs spat between the United States, China, and the EU, but at the end of the day I think value hunters will come back into take advantage of these cheap prices.
