S&P 500
The S&P 500 had a slightly positive session on Wednesday, as we continue to make fresh, new highs. This market has shown a significant amount of resiliency, and therefore I think that the market is still going to offer plenty of opportunity to go long on dips, and that’s exactly what I plan to do. I believe that the 2500 level underneath continues to be a “floor” in the market, and that it’s only a matter of time before buyer’s reenter as we drift lower. Given enough time, I fully anticipate that this market will test the 2550 handle, and even break above there. The US stock markets continue to be extraordinarily bullish, and selling is a fool’s errand. Because of this, I have no interest in shorting, and I believe that we will continue to see algorithmic traders pick up any slack shown in this market.
NASDAQ 100
The NASDAQ 100 continues to show resiliency as well, but the 6000 level has offered enough resistance to turn this market around yet again. We cannot close above there on a daily chart, so I think we will probably pull back slightly older to build up enough bullish pressure to finally break out. On a daily close above the 6000 handle, I think that’s the sign that we are going to continue to go much higher. I believe that we will eventually look towards the 6200 level based upon the ascending triangle that we are trying to break out of. Pullbacks should be well supported below, and therefore I look at them as opportunities to pick up the NASDAQ 100 “on the cheap.” Shorting isn’t a thought at this point, and I believe that eventually the buyers get what they are looking for.
