S&P 500

The S&P 500 fell significantly during the course of the day on Friday as the jobs number came out a bit on the soft side. By doing so, it raises more questions about the economic strength of the United States, and with that being the case it also makes sense that the stock markets would fall. However, there is a massive amount of support just below so it’s very likely that we can only fall so far. With that being the case, I feel that a supportive candle just below should be an excellent buying opportunity, at least for the short-term. Because of this, I am going to be patient but certainly I am not looking to sell and only to buy at this point.

Nasdaq 100

In a scenario that’s a little bit easier to discern from the S&P 500, the Nasdaq 100 broke down rather significantly during the day on Friday. 4000 offered a bit of a reprieve for the buyers, and if we can bounce from here that would of course be very important. However, I think what we are looking at is a support barrier that is essentially a zone, not a line. That’s zone should run down to the 3900 level, perhaps even lower than that given enough time. Because of this, I am looking for a supportive candle to start buying but I also recognize that a break down below the 3900 level is possible, since this market fell into a bit of a freefall, which should be simultaneous with several other markets around the world. Quite frankly, the Nasdaq 100 is simply following the lead of everyone else, as indices globally look a bit tired.

If we do get a bounce, I think that we’re going to struggle to get above 4150 at the moment, but could go as high as 4300 after that.

Print Friendly, PDF & Email

Related Posts