S&P 500
The S&P 500 of course was close during the session on Monday as the Americans celebrated Presidents’ Day, but in the end, we did have some electronic futures trading and of course CFD trading. Currently, the CFD markets look as if they are finding a certain amount of support at the 2700 level, an area that was previously resistant. Ultimately, I think that the market will find buyers in this area, and I think that if we bounce from there, it should look like a nice buying opportunity. Ultimately, if we can break above the 2760 level, then I think that the market will continue to go higher. Ultimately, the market should continue to be bullish, unless we break down below the 2675 level. A breakdown below there, may make the market goes down to the 2600 level.
NASDAQ 100
The NASDAQ 100 went back and forth during the day as well, as we continue to hover near the 6775. I think there’s plenty of support at the 6700 level, so will see what happens there. If we can bounce in there, the market should continue to go much higher, perhaps reaching towards the 7000 level. If we break down below the 6700 level, it’s likely that we then go down to the 6600 level, and then the 6500 level which is even more supportive. I don’t have any interest in shorting this market, but I think that given enough time enough value hunters in a get involved in this market to continue to lift it. However, if we were to someday breakdown below the 6200 level, then that is an extremely negative sign and could send this market much lower. Longer-term, I still anticipate that we will find the 7000 level over the next several months.
