S&P 500
During the Friday session, the Nonfarm Payroll Numbers came out slightly better than expected at 215,000 for the month of March, as opposed to the expected 205,000. Initially, the S&P 500 fell during the day but found quite a bit of strength as we shot higher. We ended up forming a very positive looking candle, and I believe that we are now going to continue to grind away towards my expected target of 2100.
I believe that short-term pullbacks will continue to be buying opportunities, and that we should continue to see the value hunters jumping into the market. Pullbacks at this point in time are simply going to be opportunities to take advantage of cheaper shares. With this in mind, I have absolutely no interest in shorting this market in any form.
NASDAQ 100
The NASDAQ 100 initially fell during the day as well, but found the 4440 level to be supportive enough to turn things around and ended up forming an even more bullish candle that we had seen in the S&P 500. We are now above the 4500 level and closed at the very top of the range for the session on Friday, which in and of itself is a very bullish sign.
I believe that the 4400 level will serve as a bit of a floor, but quite frankly I would be very surprised to see us reach down to that area anyway. Ultimately, I anticipate that this market will reach towards 4725, but there could be pullbacks from time to time. Again though, in this market I believe that is simply going to be value that traders will return to again and again. There is no scenario in which I’m comfortable selling the NASDAQ 100 as it tends to be one of the faster moving indices in America, so it makes quite a bit of sense that it will reach the upper targets quicker than the S&P 500, or even the Dow Jones Industrial Average.
