S&P 500
The S&P 500 fell during the course of the session on Tuesday, testing the 2000 region and finding plenty of support. The fact that the market turned back around and bounced to form a hammer suggests that the market looks ready to turn around and perhaps continue higher. Because of this, the market should continue to go towards the 2080 handle over the longer term, but there will be pullbacks from time to time. Because of this, the market is one that I’m only willing to buy, but I do recognize that it might be a series of short-term trades and not necessarily ones that you can hang onto because of all of the volatility that should be seen.
NASDAQ 100
The NASDAQ 100 initially fell during the day on Tuesday, but turned back around to form a nice-looking supportive candle in the form of a hammer. Because of this, the market should continue to much higher, so having said that the market should continue going higher, perhaps reaching towards the 4500 level. The market could get a bit of a boost at this point in time as the FOMC Meeting Minutes come out during the course of the day.
Pullbacks at this point should have more than enough support, and I see a massive amount of support all the way down to the 4100 level. Ultimately, it’s one of those situations where the only thing you can do is buy this market, and when it pulls back you simply have to wait for signs of support or an impulsive candle hired to start going longer. Having said that, I believe that we are going straight up from here.
It’s possible that the market could break above the aforementioned 4500 level, but it will take a bit of effort to do so. Ultimately, it should happen but it may take some serious effort and time.
