S&P 500
The S&P 500 rallied again during the day on Monday, after initially dipping towards the 2800 level. We are ready to continue going higher from what I see, and I think at this point it’s obvious that dips are to be bought, not sold. Longer-term, I believe that the market is probably going to go looking towards the 3000 handle above, which is a major psychological level. I think that the market will continue to benefit from not only the Senate looking to vote to put the government back to work, but the tax reform bill that has recently passed. The US economy continues to strengthen, and that of course helps the S&P 500 as well. Beyond that, the US dollar has drifted a bit lower, and it suggests that we are more than willing to buy the US stock market overall.
NASDAQ 100
The NASDAQ 100 rallied again during the day on Monday against the NASDAQ 100, breaking above the 6850 handle. Short-term pullback should be buying opportunities, and the 6700-level underneath is a bit of a “floor” in the market. Ultimately, I think this is a market that should continue to find interest in trying to reach towards the 7000 level above, which is my longer-term target overall. I suspected that we were going to get there by the end of the year, but at this rate, it could be the end of the week.
We are bit overextended, but any pullback at this point should offer value that most traders are willing to take advantage of. The NASDAQ 100 has been a bit of a laggard until recently, and it looks now as if it is going to lead the rest of the indices in America higher.
