S&P 500
The S&P 500 rallied during the course of the day on Friday, breaking well above the 1900 level. Because of this, I now feel that the market is probably going to try to reach the 1950 level, although it won’t necessarily be easy. I think that short-term pullbacks will offer buying opportunities as well as positions for short-term buyers, but it’s really not until we break above the 1960 level that I feel confident in a longer-term move higher. With this, I think the market at the very least needs to bounce, so it makes sense that we could see a little bit of positivity going forward. On top of that, several stock markets around the world, this one included, ended up forming a hammer during the end of the week on the weekly timeframe. This of course is very bullish.
NASDAQ 100
The NASDAQ 100 had an extraordinarily strong day on Friday, breaking through the 4200 resistance barrier, and reaching 4250. Because of this, I think 4350 is in the cards and possibly a serious attempt to break above the 4400 level. Once we get above there, I feel the market really can pick up steam to the upside.
Pullbacks are probably expected at this point, but I would have to think that due to what I am seeing around the world in the stock markets that it will more than likely offer a buying opportunity based upon value. The NASDAQ tends to be highly sensitive to overseas markets, as a lot of the technology companies in the United States do quite a bit of international business. With this being the case, I believe that the NASDAQ 100 may find itself moving quicker than many of the other US indices making it much more bullish in my opinion. At this point, I believe that the 4000 level is essentially forming a floor in this market.
