S&P 500
The S&P 500 initially fell during the course of the session on Thursday, but we turned back around to form a hammer. We have seen a hammer for the last 4 sessions, and that suggests that there is more than enough buying opportunities every time we dipped, and a massive amount of support below. With this being the case, it’s very likely that we will eventually break out to the upside. If we break below the bottom of these hammers, it really doesn’t matter, because I see a massive amount of support down at the 2125 handle. Nonetheless, I am “buy only” at this point in time and I have no interest whatsoever in selling. I do think that we eventually go to the 2250 level, but it might be a bit of a rocky road between here and there.
NASDAQ 100
The NASDAQ 100 initially fell during the day on Thursday, but turn right back around and formed a hammer. The hammer was preceded by another hammer, so this shows just how much bullish pressure there is in the NASDAQ 100 The moment. Ultimately, I do think that we continue to go higher but pullbacks may be necessary as we are getting a bit overextended at this point in time. Regardless, I have no interest in selling this market and I believe that we will continue to see quite a bit of buying opportunities every time we pull back.
The explosion that we have seen recently has been a bit overdone though, so I am a bit hesitant to jump in right away. I think that given enough time we will see quite a bit of bullish pressure but at this point I have to feel that this is a market that may be a little overheated recently. With that, I feel value is coming.
