S&P 500
The S&P 500 initially gapped higher at the open on Monday, and then went back and forth. The market pulled back in order to form a red candle, but at the end of the day we basically were unchanged. With this, if we can break above the top of the range for the session on Monday, the market should continue to go higher as it would show a bit of momentum and continuation of the move higher. I believe that there is a massive amount of support below, all the way down to at the very least the 2040 level, if not even as low as the 2020 handle. In fact, the market has seen quite a bit of bullish pressure recently, and the 2000 level at this point in time is where I would believe the trend would change, so until then it is a matter of “buy only.”
NASDAQ 100
The NASDAQ 100 initially rallied during the course of the session on Monday, but found enough resistance at the 4360 level to turn things back around and form a shooting star. The shooting star of course is a negative sign, but we have such a positive candle from the previous session that we should see buyers below after we dipped. On the other hand, if we can break above the top of the shooting star, I would be a buyer of this market as it would show quite a bit of bullish momentum in a continuation of strength from the bounce.
I do believe that the 4400 level above could be resistance though based upon the fact that it had been supportive. If we can get above there, then we could go even higher. At this point in time, even though I do fully anticipate this market pulling back in the short-term, I have no real interest in selling.
