S&P 500
The S&P 500 initially fell, turning around to form a hammer. The hammer sits on top of the 2500 level now, and that is a very bullish sign. This is especially bullish after the Federal Reserve came out with its more hawkish than anticipated statement, and the stock market went ahead and started buying. That being the case, the market should continue to go higher, and I believe that buyers will continue to jump into this market on dips. This is a market is ready to go much higher, and I think that selling is all but impossible. I anticipate that we are going to be looking for the 2550 level in the short term, and that every time we dip, people who are missing the rally will be forced to jump in.
NASDAQ 100
The NASDAQ 100 initially sold off rather drastically during the day, but turned around to form a hammer. The hammer is a very bullish sign, but it’s it below a very resistive 6000 handle. If we can break above there, and more importantly close above there, I would be a buyer. Until then, I think you can buy dips for short-term moves, but beyond that it might be a bit difficult to hang onto. I believe that the 5900 level underneath is going to continue to be massively supportive. Ultimately, this is a market that once we break above the 6000 level should go looking for the 6100 level. Ultimately, this is a market that should continue to be choppy, but I think that longer-term proclivity is to the upside. The uptrend line is still very much intact, so I certainly would be selling this market. Ultimately, this is a market that is going to lag the S&P 500.
