The S&P 500 fell slightly on Friday, but quite frankly after all the exhaustion that the market shown, that’s not much of a surprise to me. I believe that the market will continue to go higher given enough time, but the 2360 level might need to be tested for support yet again. This is a market it’s been an uptrend for a long time, and I don’t see that changing anytime soon considering how strong things look for the US economy. I believe that we will finally break above 2400 and then reach towards the 2500 level over the longer-term. This type of consolidation after a move higher like we had seen during the month of February is quite common.
The NASDAQ 100 fell slightly during the day as well, using the 5400 level as support. I think we could drop from here, but I do not expect to move below the 5300 level as it should be massively supportive, and quite frankly I think there will be buyers closer to the 5350 handle as well. A break above the top the shooting star from the Thursday session, substantively a fresh new high, would also be a buying opportunity as we should then go reaching towards the psychologically significant 5500 level which I have had as a longer-term target for quite some time now.
The NASDAQ 100 has led the rest of the US indices higher over the last several months, and by extension the rest of the world. Even if you are not treating the NASDAQ 100, you should be paying attention to this index as it has been a great harbinger of bullish pressure to come in other markets such as the S&P 500, the Dow Jones 30, the DAX, the CAC, and so many others.