The NASDAQ 100 futures fell initially during the Tuesday trading session, but received a bit of a bounce from the 2630 level as the daily candle has formed a hammer. This is the second hammer and three candles, and it also happens to be on top of a recent resistance level. Because of this, we feel that this market is ready to bounce again; even though we don’t necessarily think long-term it may be a buoyant stock market.
Regardless, this market has been oversold lately and a bounce is more than likely going to be necessary. Because of this, we are short-term buyers of the NASDAQ at this point time. As far as selling is concerned, if we managed to break the low of the hammer from the Friday session, we would become aggressively short of this futures market.