S&P 500
The S&P 500 initially fell during the course of the session on Monday, but turned around back around to form a very bullish candle. Because of this, we did up slamming into the 2150 level, an area that had previously been so supportive. Simply put, I believe that if we can break above the top of the range during the course of the session on Monday, we will continue to reach towards the 2200 level again. If we can break above there, I think we then go to the 2250 handle, and then perhaps began a fairly long-term buying opportunity. I believe pullbacks will continue to look enticing to the longer-term buyers, and that this market will continue to be bullish given enough time. After all, most of the selling was due to fears of interest-rate hikes, but central bankers have walked back some of those fears on Monday.
NASDAQ 100
The NASDAQ 100 initially fell as well, but much like the S&P 500 ended up turning completely around and forming a bullish candle. There is a lot of noise just above though, so a pullback wouldn’t actually be much of a surprise. I believe that sometimes on pullbacks will simply be a momentum building attempt, and that we will eventually break out to the upside. I still have a longer-term target of 5000 Monday comes to the NASDAQ 100, and at this point in time I am not interested in selling. I recognize that we could very well fall from here, but at this point I will simply wait for a buying opportunity as that’s what I believe we will see longer-term. In fact, it’s not until we break down below the 4500 level that I would consider selling this market, because that of course would be a large, round, psychologically significant support barrier broken.
