S&P 500
The S&P 500 rallied during the day on Thursday as we continue to see buyers jump into this market. With this being the case, I think that every time we pullback you have to start thinking about going long as we are pressing up against a significant high as the 2200 level. If we can break above there, it becomes a longer-term “buy-and-hold” situation. I also recognize of the 2150 level below should be relatively supportive, and essentially the “floor” in this market at the moment. With this in mind, I am only looking to buy this market and I believe that the absolute “bottom” of the uptrend is somewhere near the 2120 handle at this point. After the massive turn around due to the Donald Trump election, I think that this market continues to see buyers going forward. Certainly, the momentum is with them.
NASDAQ 100
The NASDAQ 100 also rally during the day, and broke above the 4500 level. This being the case, looks as if the market is looking to continue towards the upside, perhaps reaching towards the 4900 level yet again. This is an area that has been resistive in the past, but also has been very attractive for the market. Because of this, I think we continue to retest the 4900 level and look for breakout to reach towards the 5000 level over the longer term. I have no interest in shorting this market, mainly because I see so much in the way of support all the way down to at least the 4700 level, and quite frankly I think that even extends down to the 4650 level. The United States continues to be the place to invest right now, and of course this will benefit the NASDAQ 100 going forward. I think that all US indices will do well, and therefore I’m not willing to short any of them.
