S&P 500
The S&P 500 bounced during the day on Friday, using what could be thought of as a trend line for support. If we can break above the 2450 handle, the market should continue to go much higher. Ultimately, if we can break towards the 2480 level, then we will make another move towards the 2500 level. I don’t have any interest whatsoever in selling this market until we break down below the uptrend line. If we can break above the 2450 handle, I think that will encourage a lot of traders to buy the dip yet again. This is a market that has offered plenty of buying opportunities on dips, and so far, it doesn’t look as anything has changed although the Thursday candle was absolutely horrible.
NASDAQ 100
The NASDAQ 100 gained about half of the losses from Thursday during the Friday session, and it now looks like we are going to continue to see volatility in a market that seems to have a “buy on the dips” mentality as well. I think that the 5700-level underneath will be supportive, and a break above the 5900 level would be extraordinarily bullish. This is a market that has been a “buy on the dips” type of market, and I think that we will eventually go to the 6000 handle. However, if we break down below the 5700 level, the market will probably go looking towards the 5600 level after that. Longer-term, I believe that this market continues to find buyers underneath based upon value. Ultimately, the market should continue to be choppy, but given enough time it’s likely that we will see the NASDAQ 100 continue to lead the other US stock indices forward. Ultimately, the other ones will follow what happens there.
