S&P 500
The S&P 500 has rally during the day again on Tuesday, reaching to higher levels. It looks as if we are going to go looking for the 2500 level above, so pullbacks should be buying opportunities. Those pullbacks should continue to offer value the traders will take advantage of but today is the FOMC Interest Rate Statement, and that of course has a lot to do with where we go next. Because of this, I look at this market as a bullish market that has a floor in it below at the 2450 handle so until we break down below there I still believe the dips offer value the traders are willing to take advantage of.
NASDAQ 100
I believe that the NASDAQ 100 grinding sideways is a sign of strength, as the 5900 level has been resilient as support. I think the given enough time we should go looking to the 6000 handle above, which is a longer-term target. I think that short-term pullbacks continue to be buying opportunities as well, and that should be reason enough to get long of this market as 5900 has proven itself more than once. However, with the FOMC announcement, we could get a bit of volatility but I think it should offer value if we drop. It’s not until we break down below the 5800 level, and that doesn’t look very likely today. I still believe that the buyers are running the show, and should continue to do so again. Ultimately, there will be volatility, but I look at dips as buying opportunities and I think most of the Wall Street traders do as well. Shorting is all but an impossibility at this point, as the longer-term money has certainly been flowing into tech stocks.
