S&P 500
The S&P 500 rallied on Monday, slamming into the 2200 level. I have been saying for some time now that if we can break above this level, the market becomes more of a “buy-and-hold” type of situation, and could go as high as the 2500 level given enough time. Pullbacks offer more and more value going forward as we continue to build up quite a bit of pressure in a market that looks ready to break out soon. Having said that, we are bit overextended so this could take a moment but I believe that eventually the S&P 500 goes much higher just as the rest of the US markets do. I have no interest whatsoever in selling, and believe that the buyers will continue to run this market going forward as the US looks primed to outperform the rest of the world economically.
NASDAQ 100
The NASDAQ 100 and rallied on Monday, using the 4800 level as support. It now looks as if we are going to continue to go higher, perhaps reaching towards the 4900 level. That’s an area that has been resistive but I think if we can break above there the market will be free to go to the 5000 level next. That’s the longer-term target that I have, and I believe we will continue to get involved to the upside every time we pullback, and supportive action will be used in order to take advantage of the optimism when it comes to the United States, and of course the possible economic expansion brought on by a more business friendly administration. I think that the 4800 level should be supportive going forward, so a supportive candle in this area would be reason enough for me to go long on a pullback. Given enough time, the 5000 level will offer significant resistance, but I’ll deal with that when we get there.
