S&P 500
The S&P 500 has been very volatile during the trading session on Tuesday, but that’s a good thing: as we have seen the markets stabilize. Initially, we fell rather significantly, but later in the day the buyers came back and we rallied to show signs of life. Ultimately, I think that the market will eventually try to go higher and break above the 2700 level. If we do that, the market should then go to the 2800 level and beyond. I still have a longer-term target of 3000, and I think we will get there but obviously we needed to find value for fresh money to come into the marketplace. Volume is very high for the day, and that is yet another reason to anticipate that this could be a strong stabilization of the market. However, if we were to break down below the 2500 level, I would become very concerned about the uptrend.
NASDAQ 100
The NASDAQ 100 also rallied after initially falling, and cracking below the 6300 level. By the end of the day, we are pressuring the 6500 level, and it looks very likely that we are going to continue to go higher. I think that the uptrend is very much intact, and perhaps of the panic selling was overdone. It’s not a huge surprise, we had gotten far too ahead of ourselves, and I think that the marketplace needed a bit of a reality check. We have gotten that reality check now, so I think that value hunters are starting to show up again. Valuations for companies are still strong, not to mention profits. We have tax reform in the United States that should continue to offer value as well, so I do believe that the NASDAQ 100 will more than likely lead the rest of the indices higher.
