S&P 500
The S&P 500 broke down significantly during trading on Wednesday, as the Americans hammered the futures market. The market did find support at 2800 though, an area that I think is vital for this market to hold. In fact, that is somewhat encouraging but I would keep tight stops if you are looking to go long. If we break down below this area, then the market probably unwinds down to the 2750 level. I recognize there is a little bit of support in this region that should continue to pick this market up, so looking at short-term charts will probably be your best bet. I believe at this point that the market is going to remain somewhat skittish though, the Turkish situation certainly has freaked a lot of people out. I believe that we will go looking towards the highs given enough time, but right now we need the currency markets to calm down.
NASDAQ 100
The NASDAQ 100 also fell hard during the day, reaching towards the 7300 level before finding some support. I think there’s even more support just below, especially near the 7250 level, so I think this might end up being a nice buying opportunity. The market melted down rather quickly at the open but has since stabilized. The situation around the world continues to make people nervous because of the risk of contagion, and of course emerging-market woes can show up here as well, as larger funds need to liquidate positions to cover problems overseas. Ultimately, I think this will end up being seen as a buying opportunity if you are patient enough. However, if we do roll over from here break down below the 7200 level, then I think the next 200 points would almost certainly be negative.
