S&P 500
The S&P 500 rallied during the trading session on Monday as traders come back to work, after a massive selloff last week. I believe that a lot of so-called “smart money” is starting to get back into the marketplace, and I believe that we are going to test the 2700 level above. If we can break above there significantly, then the market goes looking towards the highs again. This has been a significant correction, but at this point it is only a correction. In fact, I believe that the uptrend is defined by the market staying above the 2500 level. If we break down below there, then we will more than likely go looking to enter a bear market. In the meantime, it looks as if the buyers are coming into the market again, and as volume picks up, that should be good as well.
NASDAQ 100
The NASDAQ 100 has broken above the top of the hammer from the Friday session, slicing through the 6500 level. If we can break above the 6600 level, the market should continue to go much higher, perhaps reaching towards the 7000 level again. This is a market that has a significant amount of bullish pressure, and I think that this will end up being a nice buying opportunity when you look back at it. If we can break above the 7000 handle, the market should continue to go much higher and that is exactly what I expect is going to happen. Pullbacks continue to be buying opportunities, and I think that although it could be choppy, you cannot sell this market as we continue to see plenty of reasons for US stock markets to continue to rally. I believe that when we look back, this will have been a great opportunity.
