S&P 500
The S&P 500 was very quiet during trading on Tuesday, as we have gotten through the concerns of the meeting between the United States and North Korea. Now we are awaiting to form some type of momentum so that we can break out to the upside. Short-term pullbacks should be a buying opportunity, as we have gotten a bit overextended. The 2800 level above is resistance so if we were to break above there that could be a very bullish sign. I believe that the 2700 level continues to be support, and I think that every time we pull back, there will be value hunters coming back into the market based upon the bullish pressure that we have seen as of late, and the fear of missing out. If we can break above the 2800 level, the market should then go looking towards the 2850 level in the short term.
NASDAQ 100
The NASDAQ 100 rallied during the trading session on Tuesday, breaking above the 7200 level at one point during the day. When we short-term pullback, I think that gives us an opportunity to pick up a bit of value, especially considering that we had formed a hammer on the Friday session last week. The market looks very likely to continue to find plenty of support near the 7100 level, and I think that it’s only a matter of time before we reach even higher. I think the “floor” in the market is 7000 below, and I think that we will continue to find value hunters in this market as well as US stock markets have benefited from the US economy being the strongest one out of the majors right now.
