S&P 500
The S&P 500 initially dipped on Wednesday, but continues to see buyers jump into this market. However, I’m very hesitant to start buying, because although I certainly think that you can’t short this market, I do think that we are overbought to say the least. Ultimately, I believe that the pullback is going to be a nice buying opportunity as we have so much bullish pressure under need. I believe that the 2300 level underneath continues to be a “floor” in this market, and that the S&P 500 should continue to reach towards the 2500 level. Ultimately, I believe that the market will continue to find plenty of reasons to go higher.
NASDAQ 100
The NASDAQ 100 initially fell as well, but continues to find buyers. We are overextended by any measure you use, so I have no interest in buying this market now. That doesn’t mean that I’m willing to sell this market, far from it. However, I think that a pullback is coming and I certainly can see where you can find more value in a market that pulls back as it has been so overbought. I believe that the US economy is about to explode to the upside, but these pullbacks are needed in order to build up enough momentum to continue what we have seen.
I believe that the 5172 level underneath is going to be the floor, as it was so resistive previously. Given enough time, we go to the 5500 level but it’s going to take quite a while to get there. This is because the pullback is so needed. Again, I am not nimble enough to start shorting this market but I do recognize that it’s difficult to buy at this level. The earnings season has been good, so that is yet another reason to stay on the upside.
