S&P 500
The S&P 500 initially tried to fall during the day on Monday, but found enough support at the 2060 level to turn things around and form a bit of a positive candle. Because of this, the market should continue to go higher, perhaps reaching towards the 2100 level. That being said, I believe that we will eventually break out above there but more than likely have to attempt to do so several times. I think that every time this market pulls back, there will be people interested in buying it based on value, and as a move above the recent highs should send this market into more of a longer-term “buy-and-hold” situation. Until then, I believe you have to play “small ball”, meaning that you have to take your short-term profits. I have no interest in selling this market, there seems to be massive amounts of support just below as well.
NASDAQ 100
NASDAQ 100 bounced a bit during the course of the day on Monday, as we broke down significantly the previous couple of weeks. With this, the bounce of course was needed, and the 4300 level has now offered enough support to make me interested in buying this market on a break above the top of the range during the day on Monday, or better yet, a move above the 4400 level. I think that there is a lot of noise above, but quite frankly the pullback should just represent value after a strong move higher. With this, I believe that we will reach towards the 4500 level, and perhaps even higher than that. Given enough time, we could go as high as the 4725 level, which was the high that we had hit last year. With no interest in selling this market at this point in time, I am essentially thinking “long only” at this point. Volatility will be a part of the deal though.
