S&P 500
The S&P 500 trying to rally during the session on Thursday but continues to find resistance just below the 2400 level. By doing so, we ended up forming a shooting star and it looks as if the market is probably going to pull back from here but I see a significant amount of support near the 2360 handle. Because of this, I have no others in shorting and I believe that when we pull back it will offer value. That value is something that we should take advantage of, as I believe we will eventually break above the 2400 level, and reach towards the 2500 level after that. This is a market that is in a very strong uptrend, and the recent consolidation does nothing to dissuade me from that analysis.
NASDAQ 100
The NASDAQ 100 tried to rally during the Thursday session, and even made a fresh, new high at one point. However, we turned around to form a shooting star and it looks as if the market will continue to struggle. However, given enough time I think that we not only break above the top of the shooting star, but I think we get within reach for the psychologically important 5500 level. At that point, expect buyers to come into the market and push this index much higher. I believe the pullbacks offer buying opportunities and there is a significant amount of support at the 5300 level. That’s an area that has been supportive in the past, so it makes sense that we may pull back in order to build up enough momentum to finally go higher. I have no interest in shorting, the NASDAQ 100 has led the way for American indices, as well as worldwide by extension. I believe that sooner rather than later we will see buyers come in to not only push this market higher, but stock indices around the world higher.
