S&P 500
The S&P 500 rallied significantly during the trading session on Monday, reaching towards the recent highs again. If we can break above the 2750 level, market is ready to go much higher. I believe the 2700 should offer support, and that short-term dips should continue to be buying opportunities. With the United States and China cooling-off the rumblings of a trade war, there is a good sign that the stock market could go much higher. I think that if we break down below the 2700 level, then will go looking towards the 2650 level which is the scene of the previous downtrend line. Longer-term, I think that we will more than likely reach towards 2800 above, but it might take a bit of doing to get there. Longer-term, I still believe that we are going to go looking towards the 3000 handle, but it’s going to take a long time to get there.
NASDAQ 100
The NASDAQ 100 initially tried to rally during most of the session on Monday but turned around to form a shooting star. The shooting star of course is a negative sign, and if we can break down below the bottom of the shooting star, it’s likely that the market will reach towards the 6800 level. I think that the market of course could break down below there, but I think it will find even more support at the 6700 level. Otherwise, if we can break above the top of the shooting star we would make a significant attempt to break above the 7000 handle, an area that is very important indeed as we have seen a major amount of resistance in that region. I don’t have any interest in shorting this market, I think at best we are looking at a pullback that will offer value.
