S&P 500
The S&P 500 rose during the course of the day on Tuesday, breaking out and above the 1970 level. Because of this, looks at we are going to continue going higher and therefore I like the idea of buying this market on short-term pullbacks. The fact that we smashed through the top of the shooting star is a very significant signal, and now I think that the market is going to try to reach to the 2000 handle. We do have the ADP numbers coming out during the day today, so it is likely that there will be quite a bit of volatility.
Ultimately, we have to look at the large candle as a sign that there is a significant amount of bullish pressure as we gained over 2% for the day. I think it’s only a matter of time before we not only break to the 2000 level, but much higher than that and reach towards the 2100 level.
NASDAQ 100
The NASDAQ 100 did much the same, breaking well above the 4300 level. I believe that the market should eventually break all the way to the 4500 level, which has been massively supportive in the past and should now be resistive. I believe that the market will go to at least that level if not higher than that, but keep in mind that the NASDAQ 100 seems to be very sensitive to global markets, as the NASDAQ 100 is heavily influenced by exporting technological companies in the United States.
I believe that pullbacks at this point in time should continue to be bought, as there is more than enough support below to keep this market bullish for the time being. I have no interest in selling, I think that there is a bit of a “floor” in this market at the 4100 level below, and therefore we need to break down well below there before selling is even possible.
