S&P 500
The S&P 500 initially fell during trading on Friday but found enough support at the 20 SMA and the Bollinger Bands indicator, to turn things around and rally significantly to form a nice hammer. By breaking above the top of the hammer, it’s likely that we will go to the 2700 level after that. If we can break above that level, then we are free to go higher. The uptrend line underneath continues to be supported, and with Friday seen interest rates in the United States falling, that give us more of an inclination to buy stocks. I believe that it will be volatile, but I think that you need to be stringent and small in your position to deal with this type of noise. Every time we go higher, then I would add slightly to continue to build up a larger core position. I think that a lot of value hunters are starting to come in.
NASDAQ 100
The NASDAQ 100 fell during the trading session, reaching down towards the 6600 level. This is a market that continues to be very noisy, but I think that the uptrend line underneath will keep a bit of a floor in this market. I think that eventually we will try to go higher, but if we did breakdown below the uptrend line, then the NASDAQ 100 could breakdown rather significantly. The 6800 level above is the target, and then the 7000 level above is an even longer-term target. I like the NASDAQ 100, but we need to see some type of impulsivity to continue going higher. Thursday was good start, and the fact that we found a bit of buying pressure at the 6600 level could 4 tell that the buyers are interested in coming back in.
