S&P 500
The S&P 500 continues to rally, as the Monday session was very bullish. The 2400 level above has offered resistance, extending all the way to the 2405 handle. Ultimately, I believe that the market continues to find buyers on dips, and we will eventually get to break out that should continue the longer-term uptrend reaching towards the 2500 level. I believe that the 2350 level underneath will be supportive and essentially the “floor” of the market, but I would be surprised if we reached towards that area. I believe we will break out sooner than later, so therefore I remain bullish. We will probably have to find buying opportunities on short-term charts as the market continues to find plenty of reasons to go higher going forward as earnings were relatively decent, and quite frankly the most recent selloff was based upon random noise from DC.
NASDAQ 100
The NASDAQ 100 rallied again during the day on Monday, reaching towards the 5700 level, an area that of course has a certain amount of psychological resistance. A break above there should send this market looking for the highs, and then eventually going much higher than that. Longer-term, the NASDAQ 100 should continue to find buyers and I think that pullbacks offer buying opportunities based upon the fact that we have seen such a strong move to the upside. The NASDAQ 100 has lead the other indices in the United States higher, and by extension the rest of the world. I believe that the 6000 level above is the target, and with that being the case it’s likely that we will continue to see a nice uptrend that is relatively reliable, or at least as reliable as a trend can be in the financial markets.
