S&P 500
The S&P 500 initially dipped a bit during the trading session on Wednesday but found enough bullish pressure to turn around and it rallied again. This coincides nicely with the hammer from the previous session, and it shows the resiliency that we have in this market. Overall, I think that the market will try to go to the 2800 level above, and perhaps even break above there. If it does, that’s obviously a bullish sign, and I think it’s all but assured that we will eventually do so. Obviously, the geopolitical concerns and the talk about trade tariffs continue to weigh upon the minds of the trading world right now, so I think that the market will be very erratic on its way to the upside. I think that if we get more trade tariffs or some type of major retaliation from either China or United States, we could see a pullback, but a lot of value hunters continue to be attracted to this market.
NASDAQ 100
The NASDAQ 100 has broken higher during the day, clearing the 7300 level late in the day. We have broken above the top of the hammer from the trading session on Tuesday, and it now looks as if we are ready to continue grinding to the upside. The 7500 level above is the target, and I think at this point every time we pull back it should be a buying opportunity. I believe that the 7100 level underneath is now offering as a “floor” in the market, and it’s only a matter of time before buyers would return on a pull back to that level. However there is no panic selling quite yet, so I think that although fears of tariffs continue to weigh upon the markets in general, it’s a buyers’ market.
