S&P 500
Obviously, the S&P 500 didn’t do anything during the day on Monday as Americans and Canadians step away for the Labor Day holiday. However, we recently seen this market go sideways for some time now, and it looks as if we are trying to build up enough momentum to continue going higher. A pullback from here should find plenty of support near the 2050 handle, and as a result it’s likely that the market falling is simply going to be an opportunity to pick up value and a market that I think goes higher due to interest-rate expectations being so low. With this, it’s likely that we will try to reach towards the 2250 level given enough time and I do have that as my target going forward.
NASDAQ 100
The NASDAQ 100 fell initially during the course of the day on Friday, and obviously nothing happened on Monday due to the Labor Day holiday. However, we are currently sitting just below the 4800 level, and as a result I think that the psychological significance of that round number could obviously come into play. However, given enough time I feel that the market will try to grind its way towards the 5000 level which is my longer-term target. I believe the pullbacks offer value, especially considering that the interest-rate picture looks fairly low in the United States. With this, given enough time I believe the buyers will return every time we pullback and therefore I remain bullish given enough time. I recognize that there will be a lot of volatility, and I think that’s going to be the mainstay of this market, but given enough time the buyers will return again and again. I have no interest in selling, and believe that at least 5000 will be targeted, if not higher levels than that.
