S&P 500
The S&P 500 had a bullish session during the day on Tuesday, as we broke above the top of the hammer from the previous session. It looks as if the market is ready to continue going higher, and as a result I believe that short-term pullbacks are buying opportunities. The market looks likely to test the 2450 handle above, which should be resistive. If we can break above there, I believe the market then goes to the 2500 level forward. I think pullbacks are buying opportunities not only short-term, but longer-term as well. I believe that the 2400 level below is essentially the “floor” in the market. We have a lot of noise coming out of the Federal Reserve announcement during the day, so any pullback in reaction to that could be a nice opportunity to go long in what is obviously a strong market.
NASDAQ 100
The NASDAQ 100 broke above the top of the hammer from the previous session on Tuesday, showing signs of strength as we continue to turn around technically. I believe that the 5700 level will offer support, and that we will eventually go looking for the 5900 level above. A break above there since the market free and clear to go to the 6000 level. I believe that the market that has led previously, will now pull back only to take its cue from the S&P 500 in general. I believe that the NASDAQ 100 is still positive, but may not be the leader that it once was. Nonetheless, this is a bullish market that should continue to find buyers and value hunters as although tech stocks have gotten beat up, the reality is that the selloff was due to just a handful of companies. With this being the case, I think that a lot of value hunting is going on currently.
