S&P 500
The S&P 500 initially fell during the course of the session on Thursday, but turned back around to form a bit of a hammer. The hammer at the top of a trading range like this normally means that the buyers are getting ready to come back into the marketplace, and continuing to push to higher levels. I believe that the market is trying to reach towards the 2100 level, and then perhaps even above there. I think that short-term pullbacks will continue to find plenty of buyers though, even if we break the back of the hammer from the Thursday session.
It appears that most indices around the world are trying to find signs of strength today, and it’s very unlikely that the S&P 500 will be any different. I have no interest in selling, and believe that the 2040 level has essentially become the “floor” at this point in time.
NASDAQ 100
The NASDAQ 100 went back and forth during the course of the session on Thursday, showing signs of resiliency and although we didn’t continue to go higher, we did not follow either. With that being the case, the market should continue to go higher given enough time. There is a massive amount of noise all the way to the 4750 level, and given enough time we should see buyers enter this market every time it pulls back. I also think that there is plenty of support below as well, and that the 4440 level is essentially the floor that we are dealing with now.
Today is Friday, so some traders may be willing to take profits and therefore it might kill a little bit of the strength going to the upside. However, I do believe that longer-term this market continues to go higher so therefore I’m very cautious about doing anything remotely close to selling.
