S&P 500

The S&P 500 had a quiet session on Friday as one would expect, as traders will have been thinking more about Christmas than putting money in a risky position. However, as we go through the holidays it appears to me that we may have short-term buying opportunities from time to time. I recognize that with the banks being on holiday today, it can be difficult to find any type of liquidity in this market. However, this is not change the analysis as I believe the 2250 level underneath offers quite a bit of support that the market will continue to respect. CFD markets could find the buyers at lower levels, awaiting the trading of the underlying S&P 500 once the market opens back up. This being the case, I think we’re going to bounce around with a slightly upward bias and then eventually break out after the holidays to the upside.

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Nasdaq 100

The Nasdaq 100 dipped on Friday, but did find enough buying pressure underneath to turn around and form a slightly positive candle. The resulting hammer suggests that we still have plenty of support underneath, and as a result I believe that the CFD markets will find buyers every time we start reaching towards the 4900 level. It’s going to be choppy, and quite frankly the move to take a while to happen. However, I believe ultimately we reach towards 5000 and that has been my target for quite some time. I believe that every time this market pulls back, you must start thinking about buying as there has been so much bullish pressure over the longer-term.

I think the 4900 level will offer a bit of the floor in this market, and once we break above the 5000 handle, things will change as it will bring more of a “buy-and-hold” type of scenario to this CFD.

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