S&P 500
The S&P 500 had a positive session on Wednesday, as we continue to grind higher. The 20-day exponential moving average continues to offer dynamic support, but I think we may have more of a sideways grind than anything else coming up. I look at pullbacks as short-term buying opportunities but I expect the volatility to continue. I have no interest in shorting and I believe that the 2300 level below is massively supportive and essentially the “floor.” I believe that the market is going to go looking for the 2400 level, and today’s action was very positive considering how volatile it was at times.
NASDAQ 100
The NASDAQ 100 rallied during the session, reaching towards the 5425 level. We are at the highs again essentially, and this suggests that the NASDAQ 100 is going to continue to push the stock markets higher in general. The NASDAQ 100 has lead the way for the other indices, so it makes quite a bit of sense that the buyers would get involved. I don’t have any interest in trying to short this market and I believe that every time we pull back, you should simply be looking for support of candles that you can take advantage of.
Given enough time, I think we will reach towards the 5500 level which has been my longer-term target for some time. I think that we will not only reach that level but I also believe that we will break above it. Nonetheless, I anticipate that there will be pullbacks, as we are a bit extended. However, a break above the 5450 level is yet another leg higher just waiting to happen, and it should not only drive the NASDAQ 100 higher, but it should continue to drive other equity indices around the world higher as well as it has been such a strong leader.
