S&P 500
The S&P 500 had a very volatile session during the day on Monday, as we went back and forth between gains and losses. Initially we fell, but we found enough support at the 1930 level to turn things back around and skyrocket to the 1960 level. However, by the end of the day we found ourselves essentially unchanged with a slightly negative bias. At this point in time, I do believe that this market will try to break out to the upside but we need to clear the top of the range for the session on Friday to reach the 2000 handle. Having said that, I’m not necessarily averse to buying a supportive candle below, as I see the 1920 level as supportive, and most certainly the 1900 level as supportive.
NASDAQ 100
The NASDAQ 100 went back and forth as well, essentially forming a neutral candle. Ultimately, this is a market that should find plenty of support below though, so if we get a supportive candle we are more than likely to go higher at this point in time. I would love to buy a supportive candle below, or perhaps a break above the top of the shooting star from the Friday session. Ultimately, I think this market will follow the European indices, as the NASDAQ 100 is full of technology exporting type of companies.
Given enough time, it’s likely that the markets will be choppy, but I do believe that there is a certain amount of upside waiting to happen. Pay attention to all those other markets as it makes sense that they will lead the NASDAQ 100 in one direction or the other. I think once we get above the 4360 level however, the trend will have changed and we should try to go back to the highs yet again. Having said that though, that is of course a longer-term prediction.
