S&P 500
The S&P 500 went back and forth during the course of the day on Monday, as we continue to see quite a bit of volatility. Ultimately though, I do see that every time we pullback there seems to be buyers below. Ultimately, I think that we also have a massive “floor” below at the 2125 handle. With this, every time we pullback I think that sooner or later we will form a supportive candle that we can start buying at that point. If we break above the top of the candle for the session on Monday, I believe that the market continues to go much higher. Ultimately, I don’t have an interest in selling this market, because there is more than enough bullish pressure underneath and I believe that interest-rate expectations must be fairly low coming out of the Federal Reserve now.
NASDAQ 100
The NASDAQ 100 went back and forth during the day on Monday, forming a relatively neutral candle. With this, the market looks as if it should continue to go higher, continuing the uptrend from the longer-term perspective. If we break down below the bottom of the candle for the day, we very well could drop all the way down to the 4600 level, but I think there’s more than enough buying pressure in that general vicinity to continue to pushes market higher. Sure, we have climbed a little bit to quickly in this market, so pulling back could very well be what’s needed in order to continue to build up momentum to the upside. Ultimately, I do think that this market probably reaches towards the 5000 level, but at this point in time we will continue to see quite a bit of volatility as people will have a lot to worry about, but ultimately it looks as if the stock markets do continue to go much higher.
