S&P 500
During the day on Thursday, the market went back and forth around the 2060 handle. The S&P 500 of course is highly influenced by the jobs number coming out of the United States today. Pullbacks should be buying opportunities, as the 2040 level should offer plenty of support. I also believe that the 2020 level below is supportive, and that the 2000 level is essentially the “floor” in this market. On the other hand though, we could break above the top of the shooting star from the Wednesday session, and that of course is a very bullish sign. I believe that we go to the 2100 level given enough time, and pullbacks should represent value in a situation where the Federal Reserve looks very likely to do less interest rate hikes than originally anticipated.
NASDAQ 100
The NASDAQ 100 went back and forth on Thursday, testing the 4500 level. If we pullback from here, that’s not a huge surprise mainly because of the large, round, psychologically significant number. If we can break above the top of the range during the session on Thursday, it’s very likely that we will continue to go higher. However, there is a massive amount of noise above here, so I think this will continue to be a very choppy market, even if we do rally.
Pullbacks will find plenty of support all the way down to the 4400 level below, which has been massively supportive previously. Ultimately, I think that we will reach the 4725 handle which was the highs from last year, but it’s going to be a significant fight. Looser than anticipated monetary policy from the Federal Reserve will continue to propel stock markets higher in the United States. I believe that given enough time, the markets will continue to be flooded by money that cannot be bothered to be used in the bond market.
