S&P 500
The S&P 500 initially fell during the course of the day on Thursday, but found enough support below the 2020 handle the turn things around and go much higher. We closed at the 2040 handle, which of course shows that the buyers are starting to take control yet again. With this, I believe that the market then goes to the 2080 handle, and then eventually the 2100 level. I think that short-term pullbacks will be short-term buying opportunities as we should continue to grind our way much higher.
There is no interest on my part in shorting this market, as there seems to be more than enough support below to keep this market going higher. With this, the market should continue to offer buying opportunities again and again.
NASDAQ 100
The NASDAQ 100 initially fell during the course of the day on Thursday as well, but turned back around to form a positive looking hammer for the session. If we can break above the top the hammer, I feel that the market will then go to the 4500 level. If we break above there, we could then go to the 4720 handle.
With that being said, I believe that the NASDAQ 100 continues to go much higher and as a result I have no interest whatsoever in selling. This is especially true considering that the Federal Reserve is not going to raise interest rates as many times as originally anticipated for the year 2016, and with that being the case it makes sense that stock markets in general will continue to go higher. With all of the quantitative easing around the world, the NASDAQ 100 is also reacting to moves that we have seen in Europe and the South Korean markets. After all, keep in mind that the South Korean index is highly concentrated with technology companies, just as the NASDAQ 100 is so it has a nice correlation.
