S&P 500
The S&P 500 had a slight gain during the course of the day on Friday and it looks now like we’re going to try to break out to the upside. We ended up just below the 2100 level, an area that of course has been very resistive. With this, I think we can make a fresh, new high we will see buyers flood into this market and push the market into a “buy-and-hold” type of situation. Pullbacks at this point in time will more than likely have quite a bit of support just below, so with this being the case this is essentially a “buy only” type of market as far as I can see. Also, it appears that the Federal Reserve isn’t going to do anywhere near as many interest-rate hikes as once thought, so that of course is good for stocks markets in general.
NASDAQ 100
The NASDAQ 100 rose slightly during the day on Friday as well, but is a little bit farther away from the recent highs than the S&P 500 is. With this, it will more than likely follow the S&P 500, and I believe that pullbacks of course will be supported in this market as well. The 100 day exponential moving average was previous resistance, and I think it will now be dynamic support, but to be honest I’d be surprised if we fell that far on any pullback.
If we can break out to a fresh, new high on the chart, I obviously think that the market will go much higher and could very well be another “buy-and-hold” situation like we have in the S&P 500. I have no interest in shorting this market at this point in time, I believe that the buyers will continue to try to find value in this market on pullbacks. With this, I believe both of these markets are going higher given enough time.
