S&P 500
The S&P 500 had a fairly decent as we gained over 1% on a break out towards the 2080 handle. The fact that the market reached the 2080 handle and simply stayed there at the end of the day is typically a good sign and I believe that we are going to continue higher as a result. We will probably target the 2100 level, and then possibly break out above there. If we do, this could be a bit of a “buy-and-hold” type of situation. With that in mind, I’m actually bullish of this market and I look for short-term pullbacks in order to start buying based upon value. I have no interest in shorting this market, because I think there is a massive amount of support at the 2040 handle.
NASDAQ 100
The NASDAQ 100 broke higher during the day on Tuesday, clearing the top of the shooting star that formed on Monday. Because we broke above the 4360 handle, looks as if we are free to continue going higher but we do have to deal with the challenge of the 4400 handle in the meantime. I do think we will break above there though, because we did in fact close to the very top of the range for the day and of course broke above the aforementioned shooting star. As both a very strong sign, and the fact that it was a very nice pullback after extraordinarily bullish move higher tells me that perhaps people are starting to recognize that there is value to be had in this market.
If we can stay above the 4400 level for more than a couple of hours, I’m willing to start buying as I believe we will eventually grind back towards the 4500 handle, and then the 4560 level. Right now, and it appears of the market is focusing on the fact that the Federal Reserve is probably going to continue to be very accommodative.
