S&P 500
The S&P 500 struggled a bit during the course of the day on Thursday, as we found the 1940 level a bit too resistive. That being said, a pullback from here is probably a short-term move as it will more than likely invite buyers to try to build up enough momentum to break out finally. Once we get above the 1950 level, the market should continue to go higher and reach towards the 2000 level. In the meantime, this pullback only gives us the opportunity to possibly build up momentum, but it also could just be a simple return to consolidation. Either way, I do believe that we are going to pull back over the next session or two. With this, I’m only bearish for the short-term.
Nasdaq 100
The Nasdaq 100 did very much the same, and quite frankly I feel that these 2 markets should move in tandem. Because of this, I would anticipate both of these markets falling for the session today, and then possibly even Monday. Sooner or later though, there will be buyers reentering this market, allowing enough momentum to be built up in order to possibly break out. It’s going to take some serious strength, but I think sooner or later we will get it because quite frankly the central banks around the world will continue to be very easy with their monetary policies. With that being the case, typically money will flow into the stock markets as bond simply will not offer enough in return.
I don’t think this market is truly broken out into we get above the 4350 level, and as a result it more than likely will continue to chop around and find quite a bit of volatility so you will have to be a will to hang onto that kind of chaos but given enough time the market should make its intentions much more clear.
Leave A Comment