S&P 500
The S&P 500 has gone back and forth during trading in the CFD market on Monday, but obviously the underlying index was not open. However, over the weekend Donald Trump has given the impression that perhaps the talks between the United States and North Korea could continue, and that should cause a positive reaction in the stock markets. The 2740 level above is resistance, and if we can break above there it’s likely that the market should continue to go higher, perhaps to the 2780 handle. The 2700 level underneath is support, but I believe that we are simply taking a bit of a breather as we have made a “higher high” recently. I do believe that eventually we will find plenty of reasons to go higher, and that the market is simply trying to build up the necessary momentum to climb.
NASDAQ 100
The NASDAQ 100 has rallied during the trading session on Monday, at least in the CFD market. The market should continue to see plenty of volatility, and I believe eventually bullish pressure as we approach the 7000 handle. I think a short-term pullback is likely to be an opportunity to pick up a bit of value in a market that has been in a strong uptrend. If we can break above the 7000 handle, the market could go as high as the 7200 level. I think that short-term pullbacks are buying opportunities, and once the underlying index opens today, it’s very likely that we could continue to go much higher. I think that the 6900-level underneath will offer support, and that it’s only a matter of time before we find value hunters coming back into the market.
