S&P 500
The S&P 500 initially fell during the day on Friday, as most indices did. However, we turned around to form a hammer just as we did on Thursday, and that tells me that the market is ready to go higher. If we can break above the highs from both the Friday and Thursday session, I feel it’s only a matter of time before we reach towards the 2100 level, my longer-term target. If we can break above there, I feel that the market continues to go much higher. Don’t get me wrong, I think there will be times where we pullback, but those should be thought of as the market offering value that you can take advantage of as the S&P 500 is certainly well supported underneath, and I believe that the 2040 level now is going to be the “floor” in this market. I think that the relatively easy monetary stance from the Federal Reserve will continue to have people looking to the stock market in order to try to make money.
NASDAQ 100
The NASDAQ 100 initially fell during the course of the session on Friday, and then bounced enough to form a bit of a hammer. The hammer of course suggests that the market is ready to continue going higher, and if we can break above the top of the candle on Thursday, I believe that the market will continue to go higher. Pullbacks from time to time should be buying opportunities, as there is a lot of noise between here and the 4725 handle, but I do think that we will get there. It will be a lot of choppy and back-and-forth type of “buy on the dips” type of market. I think that the 4440 level below will start to offer a bit of a “floor” in this market.
