S&P 500
The S&P 500 went back and forth during the course of the session on Thursday, testing the 2060 level for support. This is a market that ultimately has quite a bit of bullish pressure underneath it. That being said, I do believe that it is only a matter of time before we break out to the upside, and a move above the top of the range since this market is looking for the 2080 handle, and then eventually the 2100 level. Eventually, we will get above the 2100 level, and it becomes more or less a “buy and hold” situation. That being said, I also believe that the currency falling in the United States of course will help exports, or at least that’s the theory, and that of course drives money into the stock market as bonds simply offer no significant return.
NASDAQ 100
The NASDAQ 100 went back and forth as well, as it appears we are essentially circling around the 4350 handle. The market had a very volatile range during the day, but at the end of the day I think we are trying to form some type of base to bounce. Below, somewhere near the 4300 level we had previously seen quite a bit of resistance, and it should now be support. This is a simple “break out and retest of the previous barrier.” There is a lot of noise just below, so even if we do continue to fall, I find it very difficult to sell. Eventually, I believe that the NASDAQ 100 will reach towards the 4500 level, and then eventually the 4725 level given enough time. I think it may take a while to get there but until then I think every time this market pulls back you have to be thinking about value, as most traders will see it as such.
