S&P 500
The S&P 500 had a rather flat day, as we bounced around in a tight range. I believe it’s only a matter of time before the market has to drop and find buyers, so I don’t have any interest in going long today. I believe that the market will continue to find buyers longer-term, but we have gotten a bit ahead of ourselves. I think that the 2300 level underneath is the absolute floor in the market, and I believe that we will eventually reach towards 2500. Having said all that, we are head of ourselves and we need to build up momentum in a market that most certainly is bullish and therefore I have no interest in selling.
NASDAQ 100
The NASDAQ 100 broke down during the day on Thursday, and although we did bounce towards the end of the day it doesn’t suggests confidence at this point. We are obviously in a bull market, but I don’t have any interest in trying to buy at these elevated levels. I think that a pullback is necessary, and it should attract a lot of traders who have been waiting for a reasonable amount of value in the market so that they can go long as well.
The market probably has a floor in it somewhere near the 5172 handle, but I don’t think we go that low. The market looks as if it’s only a matter of time before the buyers return, so I think a couple of days of negativity should continue to only offer value. It’s only a matter of time before we break out to the upside but with the overextended move that we have seen recently, I’m a bit cautious about going long right now. Look for value, and then take advantage of it as the trend has been so strong.
