S&P 500
The S&P 500 rallied a bit during the trading session on Tuesday, bouncing from the vital 50 EMA. Beyond that, we have also seen a continuation of the bounce from 2700 on Monday, which is a technically important level. I don’t know that we continue going higher in the short term, but it does look as if we have plenty of structural support underneath that will eventually push the market higher. However, if we were to break down below the 2700 level, the market probably unwinds back to the 200 day moving average at the 2675 region. Beyond that, there’s an uptrend line that also supports the market, so I think it’s only a matter of time before the buyers regain the upper hand, but it may take a minute for that to happen. Above, the goal is to break above 2800 again, allowing the market to continue its upward trajectory.
NASDAQ 100
The NASDAQ 100 also bounced during the day on Tuesday, continuing the bounce from the vital 7000 handle. The 50 day EMA is just below current pricing, and I think it suggests that we are going to go looking towards the 7200 level above. If we can break that handle, then we go to the highs at the 7300 level. On the other hand, if we turn around and break below the 50 EMA, it’s very likely that we could drop down to 6800, possibly even lower. The NASDAQ 100 tends to move quicker than some of the other indices in America, so don’t be surprised if we get a sudden move in one direction or the other. All things being equal though, we are still in and uptrend, despite some of the negativity that we have seen lately.
