S&P 500
The S&P 500 broke higher to the upside during trading on Tuesday, reaching towards the 2860 handle. We are approaching the highs from January, with an eye on the 2880 handle. I think at that point, the sellers will probably come back into this market, and I believe it will be resistive. This is especially true considering that the market has been a bit overextended recently. If we can break above that level, then I think the market probably goes to the 2900 level. Otherwise, look for pullbacks offer value in a market that has quite a bit of momentum built in. I believe that the 2800 level right now should be the floor. Either way, I would anticipate a lot of noise in this market. Because of this, I would keep my trading position small but I certainly have an upward bias overall.
NASDAQ 100
The NASDAQ 100 has also rallied during the day, reaching towards the 7460 handle. We still have a lot of resistance above the 7500 level, so keep in mind that we may need to pullback in order to build up the necessary pressure to continue to the upside. If we clear the 7500 level, then I believe that the NASDAQ 100 will probably continue to go higher over the longer-term. Until then, I think that the 7200 level underneath is essentially the “floor” in the market. Ultimately, we could break above the 7500 level, and if we do then I think the market probably starts reaching towards the 7750 handle. I believe in buying dips based upon value more than anything else in this market as we have seen so much in the way of strength.
