S&P 500
The S&P 500 rallied slightly during the trading session on Wednesday after initially pulling back. The 2800 level looks to be strong demand, and I think that we could eventually see a break out to the upside. However, back during February there was a major amount of supply in this market just above, so I think that the area between here in 2840 is very dicey. If we were to break above 2840, then I feel that the market is more than likely ready to continue going higher. In the short term though, I suspect that we have a pullback, and, perhaps offering value in a very strong uptrend. Longer-term, I still think that we could go as high as 3000, but it is going to take some time to get there. Beyond that, there are of course is a lot of fear around the world.
NASDAQ 100
The NASDAQ 100 was slightly negative during the day, pulling back from the 7400 level. That’s an area that of course has a certain amount of psychological importance to it, mainly because it is a large, round, psychologically significant figure. I think that short-term pullbacks should be buying opportunities, as the 7200 level underneath should offer a bit of a “floor” in the market.
I think that the NASDAQ 100 will continue to lead the markets higher over the longer-term, and I do believe that we go to the 7500 level over the longer-term. It will take a while to get there, but I believe that it is far too juicy of a target for longer-term traders to completely ignore. However, we may be a little bit overextended in the short term, so it’s possible that we give you an opportunity to buy the NASDAQ 100 at a lower level.
