S&P 500
The S&P 500 did very little during the day on Wednesday, as we are hovering near the highs. I think at this point it’s likely that we will see the occasional short-term pullback, but that should be a buying opportunity as we obviously have an overall upward proclivity. The markets don’t have a lot of news flow this week beyond political, so it’s a bit difficult to gauge where sentiment is other than the fact that we are simply sitting sideways, which in and of itself is probably a good thing. I look at the 2875 level as offering significant support, just as the 2900 level should. Eventually, I do expect a break out to the upside and if we can get any type of softening out of either the United States or China, that could be the celebratory explosion to the upside that the market needs. Beyond that, the US and Canada could come to some type of trade agreement as well, although I think most people expect that to happen anyway.
Nasdaq 100
The Nasdaq 100 initially fell but continues to find support at the uptrend line I have marked on the chart. The market has been very choppy and difficult, but it looks as if the 7500 level is offering significant support. I think given enough time, we should rally and continue to go higher but it’s going to be very difficult to hang onto this trade. You should do so in small amounts at best, but I also recognize that there is a ton of support underneath so at the first signs of good news I think that this market will continue to turn around and rally. If we do break down below the 7425 handle, then I think things get ugly.
