S&P 500
The S&P 500 initially fell during the course of the day on Tuesday, but then bounced enough to form a bit of a hammer. The hammer of course is bullish, and we have been finding buyers every time we pullback, and with that being the case I believe that we will eventually break out to the upside. I have a target of 2250 given enough time, and believe that selling is something that cannot be done. After all, stock traders are now starting to think that we are not going to be seeing a large amount of interest-rate hikes, so that of course drives up the value of the stocks in America as bond simply will not have a return.
NASDAQ 100
Breaking above the top of the hammer for the session on Monday during the Tuesday session was a big deal, and we are clearly well above the 4800 level. If we continue to go higher, we will eventually break out to the upside, reaching towards the 5000 level. I believe that every time we pullback and find support the value hunters will return as it should be thought of as the NASDAQ 100 going “on sale.” With this being the case, the 5000 level is the target, but we will more than likely find quite a bit of resistance in that area as it is a large, round, significant number. This has been my target for some time now, and quite frankly I feel that the market will continue to buyers every time we dipped, and with that being the case it’s likely that we will continue to see more and more people enter this market as volume picks up after the summer break.
I believe that even if we break down from here, the 4700 level is going to be very supportive as well. In other words, I don’t even have a scenario in which I’m willing to sell at this point in time.
