S&P 500
The S&P 500 rallied on Friday, as it looks very likely to continue to go higher. I believe that the 20-day exponential moving average underneath, pictured in green, should continue to be dynamically supportive, and a break above the top of the candle should send this market much higher. We should then reach towards the 2400 level above, and then possibly the 2500 level after that. I think that the 2350 level should be supportive, and that the 2300 level is massive in its ability to be a floor in this market. This is a very nice uptrend, so I have no interest in selling this market going forward as it looks like US indices overall continue to outperform.
NASDAQ 100
The NASDAQ 100 broke higher during the day on Friday, breaking above the top of the hammer from the Thursday session. We tested the 5400 level, but I think it’s only a matter of time before we can break above there. Pullbacks offer value in a very strong market that has been leading the US indices higher overall, which by extension has been leading stock markets around the world to the upside. I think pullbacks are nice buying opportunities, and that the 20-day exponential moving average on the chart continues to offer support.
If we break above 5400, and I think we will, the market should then go to the 5500 level. That’s an area where I believe there will be a significant amount of psychological resistance, and it makes sense that there should be a massive psychological barrier. However, I think that 5500 is simply just another number at the end of the day, and we will certainly breakout above it. I’m very bullish of the NASDAQ 100 and have no interest in selling whatsoever.
