S&P 500
The S&P 500 initially gapped lower during the course of the session on Monday, but then turned right back around to fill that gap and even break above there. That being the case, we have a very bullish engulfing candle, and that normally is reason enough to start buying. On a break above the top of the range for the session on Monday, we should then reach the 2100 level, and then break well above there and continue the longer-term uptrend. I have no interest in selling this market, and I now think that the bottom of the candle, especially the 2060 level should be massively supportive. I believe that sooner or later this market will continue to go much higher.
NASDAQ 100
The NASDAQ 100 initially gapped lower, but then turned right back around at the 4500 level to form a positive looking candle. If we can break above the top of the range for the session on Monday, this market should continue to climb much higher, perhaps try to reach towards the 4750 level, which was originally the massive resistance that plagued the market at the end of 2015. That’s my target going forward, and I believe that eventually we will get there. It will be back and forth though, and more than choppy I imagine as there is quite a bit of noise just waiting to get in the way of buyers.
I believe that the 4440 level below is essentially the “floor” in this market, and that supportive candles will appear and come back into the marketplace, bringing buyers into the fray as we have seen quite a bit of bullishness over the last couple of months. A loose monetary policy out of the United States of course will facilitate higher stock prices anyway, and with this in mind I feel that this is a “buy only” marketplace at this point in time, and should continue to be.
