S&P 500
The S&P 500 has been volatile during the choppy trading session on Tuesday, as we initially rallied significantly, but then turned around to form a bit of a shooting star. Perhaps the fears of trade war rhetoric still linger, so I think at this point were probably looking at a market that is bouncing around in general, perhaps trying to build up enough confidence to make a significant move. I think that the S&P 500 will continue to see the importance of the 2700 level, and that it will essentially be the “fair value” of the current consolidation area. If we break above the highs during the session from Tuesday, then I think the market probably goes looking towards 2800 above. Ultimately, I think the one you can count on is a lot of nervous trading as people are concerned about tariffs.
Nasdaq 100
The Nasdaq 100 has initially tried to rally during the day, and although closing positively, we have turned around to form a less impressive candle then we could have had. If we can break above the top of the highs of the session, the market could go to the 7000-level next. A break above that level should continue to sin fresh money into this market place, as it would be a fresh, new high for the Nasdaq 100 overall. I do think that the Nasdaq 100 will lead the way going forward, so as it rises, the S&P 500, the Dow Jones 30, and many of the other CFD indices will continue to climb as well. I think the 6700-level underneath is massive support, and essentially the “floor” in the market in the short term. The market continues to be noisy, but overall, I think there’s plenty of support.
