S&P 500
The S&P 500 rallied significantly during trading on Monday as the bullish pressure continued. It looks as if the 2800 level above is going to be a significant resistance barrier, so I would expect some type of resistance in this area to show itself. I think that we will eventually break above there though, and then once we do the market will probably go to the 2850 handle. I believe that the market will continue to do quite well, as this has been very impulsive to the upside. That impulsivity is always a good sign. At this point, I have no interest in shorting the market and I believe that pullbacks will continue to give us an opportunity to pick up value in a market that has been bullish and remarkably resilient in the face of long odds.
NASDAQ 100
The NASDAQ 100 broke higher during the trading session again on Monday, clearing the 7200 level quite handily. The market looks likely to continue to go to the 7300 level after that, and I think that short-term pullbacks will probably continue to be opportunities to go long. I have no interest in shorting this market, and it now looks as if the 50 EMA is going to continue to be supported. I think that pullbacks will be exactly what most traders look for, as they need a reason to put money to work. If we can break above the highs though, that would be a very bullish sign and I think that the market could probably go to the 7500 level. I have no interest in selling the NASDAQ 100, as it looks like stock markets in general are going to continue to be very bullish.
