S&P 500
The S&P 500 had a slightly positive session during the day on Tuesday, but did get back a little bit of the gains. Ultimately, this looks a market that’s trying to find some type of momentum in one direction or the other. I believe that the 2120 level below is massively supportive, and I also recognize that there is probably a somewhat substantial support level near the 2140 handle. Because of this, I still believe in the upside but also recognize that it is going to be choppy to get back towards the 2200 level again. This is a market that is probably thriving more for the low interest-rate environment than anything else, see you can’t believe that there is any major confidence, just more or less the typical “nothing better” type of attitude that stocks enjoy when the Federal Reserve is in full quantitative easing mode.
NASDAQ 100
Unlike the S&P 500, I am a bit more bullish when it comes to the NASDAQ 100 and have been for some time. After all, we broke out to fresh new highs recently, and now looks at we are bouncing back towards that general direction. The 4900 level will be the next target, and then eventually the 5000 level which is my longer-term target and has been for some time. We’ve seen quite a bit of volatility in this market, but at the end of the day the buyers are most certainly taking over, and as a result I have no interest in selling whatsoever. I believe the 4800 level below is essentially the beginning of the “floor” in this market, and therefore as long as we can stay above that general region there’s no reason to think that we won’t continue to go higher. This isn’t to say that the market isn’t going have pullbacks from time to time, but those should only offer value.
