S&P 500
The S&P 500 broke higher during the session on Thursday, breaking out above the recent highs that we had seen. Now that we have made a fresh, new high, I believe that the market may find buyers on dips, and that the 2400 level should be supportive. We are heading into a long weekend in the United States though, as Memorial Day is Monday. Because of this, volume could be light so a pullback might set up a trade for next week, not necessarily today. Going forward, I expect this market to reach towards the 2450 handle, and then eventually the 2500 level. I have no interest in selling, not only have we broken above a significant resistance barrier, but we have also broken above several moving averages yet again that I follow.
NASDAQ 100
The NASDAQ 100 broke higher again during the day on Thursday, reaching towards the 5800 level. This is a very bullish sign, and I believe that the market would continue to go higher, but the 5800 level could offer a little bit of an opportunity for a pullback and the potential to pick up more value going forward. I believe that the 5700 level will be supportive, and the longer-term uptrend will continue to strengthen. I have seen this market reverse every time the sellers step in, and there’s nothing on this chart that tells me this is about to change. The 6000 level above is the longer-term target, and I think we will reach that before too long. In the meantime, this remains a “buy on the dips” type of situation, so look for value in a market that has been leading the way for other indices around the world, not just in the United States.
