S&P 500
The S&P 500 went back and forth during the course of the session on Monday, as the 1940 level offered resistance, but we did see a bit of support in 1920. I think at this point in time the most important thing to pay attention to is the 1950 level. If we can get above there the market will be free to go much higher, probably the 2000 region. In fact, that’s kind of what I’m waiting to see, but I also recognize that if we do get a significant pullback again and see signs of support, we would start going long at that point. I have no interest in shorting this market at the moment, at least not until we get below the massive green candle from Friday which doesn’t look very likely at the moment.
NASDAQ 100
The NASDAQ 100 had a little bit more of a positive session than the S&P 500 did, but we still have to deal with the 4350 level before we can truly take off to the upside. Having said that, this market tends to move higher and quicker than the S&P 500 it’s very likely that we will see the breakout here first. Pullbacks could very well be buying opportunities, and given enough time we should reach towards the 4500 level.
I have no interest in selling this pair at this moment, because quite frankly there’s far too much in the way of support below, especially near the 4100 level. Below there I think the support extends all the way down to the 4000 level, so quite frankly there’s no real way to imagine shorting this market at the moment. It’s just going to be easier to buy this market on a sign of strength, which I think we will be getting fairly soon.
