S&P 500
The S&P 500 rallied rather significantly during trading on Monday, breaking towards the 2780 level. It looks as if we are going to go reaching towards the 2800 level above, and perhaps even higher than that. Pullbacks of this point should be buying opportunities, as we have broken the top of the weekly hammer. I believe that the 2700 level should now be support, and that the market is on track to reach towards the 3000 level longer term. That is my longer-term target for the year, but obviously were not to get there today. I think that short-term pullbacks will continue to attract algorithmic traders and buyers in the stock market, as the hunt for value and at this point seem to be willing to put money to work every time we drop 1%.
NASDAQ 100
The NASDAQ 100 has rallied significantly during the trading session on Monday, showing signs of extreme bullishness. The 7000 level is being threatened as I record this, and now I feel it’s only a matter of time before a breakout above there. It does mean we can pull back, but would it does mean is that if we do pullback, it should bring in more buyers as we are building momentum to finally break out. Once we make a fresh, new high, I think a lot of “buy-and-hold traders” will start to get in there as well. I think the 6700 level is supportive now, just as the 6800 level is. Somewhere in that range, I believe is the “floor” in the uptrend. Longer-term, I believe that this market will probably go looking towards 8000, which is my longer-term target. I think at this point; the NASDAQ 100 will continue to attract fresh money just as the rest of the US stock indices are.
