S&P 500
The S&P 500 went back and forth during the day on Wednesday, forming a big neutral candle. Because of this, the market looks as if it is trying to rally to do next but the most important thing that I see is the 2120 level below been supportive enough to continue to push the market higher over the longer term. I think that it’s not until we break down below the 2100 level that you can consider selling this market, and I also believe that the low interest rate environment should continue to lift the S&P 500 overall. If you are willing to deal with this trade and the potential choppiness, at this point time I believe that long is the only direction you can be found in.
NASDAQ 100
The NASDAQ 100 did fall a bit during the day on Wednesday, but I see quite a bit of support just below. Quite frankly, it’s not until we break down below the 4750 level that I become truly concerned about the NASDAQ 100, and I believe based upon the other US indices that we will see buyers reenter this market. It’s possible that the market has an impulsive green candle form during the day, but either way I am looking for either that or a supportive candle. Short-term charts might be able to be used, and I still have a longer-term target of 5000. I recognize of 4900 will probably be somewhat resistive, but in the end I think it’s only a matter of time before it gets broken.
With this being the case, and of course the fact that we have a fairly low interest rate environment, it makes sense that the NASDAQ 100 continues to attract money and therefore go higher. I like US indices overall, but do realize that we are in a fairly choppy environment.
