Another bullish day in the markets today, in fact, if anything, even more bullish than yesterday. Why, you might ask, after all, the market was down more today compared to yesterday? Well, in my opinion, the market had plenty of reasons ranging from bad durable goods orders number to the Fed announcement to fall hard from its overbought state, but didn't. It still hung in there and finished respectably. That is bullish.
But let's see the levels from which we can expect support. Below is the S&P 30 minute chart in which I have marked the resistance and the next two support levels.
Similarly, here is the Nasdaq hourly chart with the support and resistance levels marked. It is sitting on an area of support right now and further support should be around 2240 level.
So, that's where we stand right now. I am not going to turn bearish until these levels are broken. The pullback is the last two days has been moderate and orderly, just what the doctored ordered for the bulls. We are still in a consolidation stage but I think the direction of the markets shall become clear before the end of the week. Until then, its better to trade small and focus on managing your risk.
I will be back with some more posts later in the evening. Take care and good luck!