S&P 500
The S&P 500 initially fell during the course of the day on Friday, but found enough support just below the 2040 level to form a hammer. That hammer of course is a bullish sign so it’s probably only a matter time before we break out to the upside. A break above the top of the hammer should send this market looking for the 2100 level, but there will be a lot of noise between here and there. On the other hand, if we break down below the bottom of the hammer from the Friday session, we could reach down to the 2020 handle. Ultimately, the market does have a bit of a positive vibe to it as the Federal Reserve looks very unlikely to fire off a bunch of interest-rate hikes this year now.
Nasdaq 100
The Nasdaq 100 initially fell as well, but found support at the 4280 level to turn things around and form a bit of a hammer. That being the case, looks as if we are going to challenge the shooting star from the Thursday session. If we can break above that, then we should see bullishness and a return to the uptrend in this market. Ultimately, we could reach as high as 4500, but expect choppy conditions in this market as it has been sold off at quite drastically but has also found quite a bit of support right where it needed to. Given enough time, we could continue to go as high as 4725, but that is obviously a long-term prediction.
I still believe that money will flow into the stock markets in general, as the Federal Reserve will likely back off a couple of the interest-rate hikes that were suggested for this year. That should send money looking for returns, as the bond market simply will not be offering them.
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