S&P 500
The S&P 500 rallied during the course of the session on Monday, breaking well above the 1860 level. Ultimately, this is a market that should continue to go higher, but I think that there is enough resistance all the way to the 1950 level to keep this market from going too much farther over the longer term. I think it’s only a matter time before we get a resistive candle, and once we do I am more than willing to start selling again. In the meantime, I’m not necessarily interested until I get the daily candle that tells me it’s time to start shorting this market. Short-term traders might be willing to buy short-term pullbacks and show signs of support though, but in the end I prefer to trade longer term.
NASDAQ 100
The NASDAQ 100 rose fairly significantly during the course of the session on Monday, breaking all the way up to the 4100 level. There is quite a bit of resistance just above though, so I think we will get a resistant candle that we can sell fairly soon. I will not hesitate to short this market as the downtrend is so strong, and this bounce is pretty small in the big scheme of things. With that being the case, I am simply waiting to see whether or not the 4100 or even the 4150 level causes a significant amount of trouble for the buyers.
Ultimately, it’s not until we break above the 4350 level that I think the trend has changed to the upside yet again, so with that being the case the market should be one that shows quite a bit of volatility, and of course negativity in the near term. We don’t quite have it yet, but I most certainly feel much easier shorting this market than buying it.
