S&P 500
The S&P 500 has opened the week slightly positive in the CFD market, showing a continuation of the bullish pressure that we saw during the Friday session. The 2775 level offering resistance, but I think that we will eventually break above there and go looking towards the 2800 level. I like buying short term pullbacks, with the 2740 level offering a bit of support as it was resistance. The 50 day EMA does look as if it is turning to the upside, so I think it makes sense that we continue to see buying on the dips. If we can break above the 2800 level, the market probably goes to the 2850 level rather quickly. I have no interest in shorting this market, as I believe the buyers are very aggressive in this market.
NASDAQ 100
The NASDAQ 100 traders continue to jump into this market looking to the upside. I believe that the 7300 level above will be a target, and eventually we will break above there. If we can pull back a little bit from here, then I think that there are plenty of reasons to jump in and continue to push to the upside. The 7000 level underneath is a bit of a “floor” in the market, as well as the 50 EMA underneath should offer support. I believe that the market should then go to the 7500 level longer term as it is a large come around, psychologically important figure. I believe that the 50 EMA continues to offer a lot of technical support for this market, so even if we do pull back, I will look at this as a buying opportunity not a selling one.
