S&P 500

The S&P 500 got hammered on Tuesday again, losing basically 2%. It looks as if we are going to the 2600 level, the area that we have bounced from previously. We bounced to retrace 61.8% and then broke down an almost perfect move. Now the question is whether or not the 2600 level will hold as support. We have not broken below it, and with that being the last trading day before the major holiday, it will be interesting to see if we make any moves. I suspect that there might be a lot of jostling to close out positions more than anything else during the day, so I would not read too much into what happens during the session unless we break down below the support. Because if we can do that going into the Thanksgiving holiday, that is a horrible sign.

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Nasdaq 100

The Nasdaq 100 also got hammered, breaking below the 6500 level at one point. We have wiped out the entirety of the move from a couple of weeks ago when we bounce, and now it looks as if we are going to try to go much lower. I believe there is a lot of negativity overhead, so I look at rallies as an opportunity to start shorting again. If we break down below the bottom of the candlestick for Tuesday, then the market will unwind to the 6250 handle, perhaps even the 6000 level. The 6750 level above will begin significant resistance, and I think anywhere between there and the 7000 level is a decent area to start looking for shorts if we do rally. I have no interest in buying this market considering what we have seen lately.

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