S&P 500
During the day on Monday, we saw quite a bit of bullishness when it comes to the stock markets around the world, so now it is a question of whether or not we can finally break out. The 1950 level needs to be conquered for the market to continue going higher, probably reaching the 2000 handle. With that being the case, I am waiting to see whether or not we can stay above that level for a couple of hours, which would then have me buying this market as I think a 50-point move could be possible. Having said that though, it’s very likely that the sellers will get involved eventually, so I would be more than willing to take profit at 2000 points. On the other hand, if we get some type of exhaustive candle we may turn right back around and head to the 1920 handle, which looks to be rather supportive at the moment.
NASDAQ 100
The NASDAQ 100 rose as well, and it looks as if it is ready to go to the 4300 level. It might be a bit of a grind, but it certainly looks as if the buyers are starting to win. Because of this, short-term pullbacks should be buying opportunities, and as a result I don’t have any interest in shorting this market at all. Once we break above the 4300 level, there is a fairly significant resistance barrier all the way to the 4350 level. If we can break above the 4350 level, that point in time we feel the market probably goes all the way to the 4500 level.
An exhaustive candle in this general vicinity could be a selling opportunity, but I would have to think that the 4100 level should be rather supportive. So having said that, negative moves should be short-term in nature at best.
