S&P 500
The S&P 500 initially tried to rally on Monday but ended up turning back around to form a shooting star. This of course is a very negative sign, but it was preceded by a hammer on Thursday so it’s very likely that we are essentially trying to go back and forth. Ultimately, this consolidation area should continue to be where we trade back and forth. The 2020 level below is to be rather supportive, and the 2000 level below there is even more supportive and essentially the “floor.” I am personally looking for some type of supportive candle below, and look at pullbacks as potential value in a market that should continue to see buyers enter due to a loosening monetary policy out of the Federal Reserve.
NASDAQ 100
Needless to say, the NASDAQ 100 did the exact same thing as we found quite a bit of resistance at the 4440 level. This is an area that has been resistive previously, but I believe that this area is only a minor resistance barrier. Given enough time, I fully anticipate that the market should go to the 4500 level. I think this pullback offers quite a bit of an opportunity, as it gives its value in this market and the 4300 level below should continue to be a bit of a “floor” in this market. At the first signs of support, I am more than willing to go long as this market certainly looks healthy and should also be supported by the loose monetary policy out of the Federal Reserve.
I have no interest whatsoever in selling this market, because quite frankly this is a market that tends to focus on international movement as well, mainly because are so many exporting technologically sound companies on the NASDAQ 100. I think we can get above the 4500 level as well, but it will probably take several attempts to get above there.
