S&P 500
The S&P 500 had a fairly strong day on Tuesday, using the 2040 level as support. With this being the case, the market looks like it is ready to continue consolidating in general, with a little bit of a positive vibe to it. Ultimately, I believe that this market will continue to go much higher and reach towards the 2100 level. I think that pullbacks at this point in time will be supported, and there is enough of a reason for buyers to get involved due to the fact that the Federal Reserve has suggested that we won’t see as many interest-rate hikes as previously thought. If we can break above the 2100 level, the market could go much higher at that point in time. Currently, it looks as if the 2000 level is the absolute bottom of the market right now.
NASDAQ 100
The NASDAQ 100 initially fell during the course of the day on Tuesday, finding plenty of support at the 4440 level to bounce and form a relatively positive candle. Ultimately, if the market pulls back, we believe that the buyers will continue to push this market higher. If we pullback from here, there is a significant amount of support at the 4400 level as well, which I essentially look at as the “floor” in this market.
I do think that we will eventually reach towards the 4725 level, but there is a significant amount of resistance above that will have to be chewed through. It also is starting to look like we are forming some type of bullish flag, which of course is a bullish sign. I have no interest in selling right now, because the NASDAQ 100 typically leads most of the other indices in the United States when it comes to movement. This market looks as if it’s going higher, so it’s a bit of a “canary in the coal mine” when it comes to US stocks in general.
