S&P 500
S&P 500 traders initially tried to rally during the day on Friday but turned around to form a bit of the shooting star. However, I think there is support just below the 2700 level, as we have recently broken above a symmetrical triangle, and I think that given enough time it’s likely that we will continue to go much higher based upon the strength of that move. I believe that the market will eventually go to the 2800 level, and then possibly even higher than that. I have no interest in shorting this market right now, because of the triangle been broken through. I believe dips should continue to be value, and I think that people will look at it as such. Ultimately, I do think that the buyers would jump in but if we were to break down below the 2500 level, that will destroy the uptrend.
NASDAQ 100
The NASDAQ 100 tried to rally during the session on Friday but found enough resistance above the 6900 level to turn things around of form a bit of shooting star. I think that the market will probably continue to drop down, perhaps using the 6800 level. I think that the markets will continue to see buyers coming in on the short-term pullbacks, as we have most certainly seen a lot of bullish pressure. The 7000 level above is of course very important from a psychological standpoint, and of course clearing that level would be a very bullish sign. I believe that the market continues to find buyers every time we did, and that the uptrend line below will continue to keep this market flow. Part of this is a headwind due to the US dollar, but ultimately the US is the favorite place for money to flow towards.
