S&P 500
The S&P 500 has initially pulled back a bit during the trading session initially on Thursday, but then turned around to rally. The market continues to press up against the 2800 level, an area that has been massive resistance, and I think if we can break above there the market is free to go much higher. There is a lot of support underneath, especially near the 2750 level. Below there, the 2700 level of course is also important. We are in and uptrend, and we are trying to break above the 2800 level. Once we do, the market should then go to the 2850 handle, and then possibly the 2900 level as well. Pay attention to risk appetite in general, that will continue to drive this market higher. I look at pullbacks at this point as a nice buying opportunity and offering a bit of value in a very strong market.
NASDAQ 100
The NASDAQ 100 initially pulled back during the day on Thursday, but then shot like a rocket through the top of the shooting star from the previous session. This makes a fresh, new high, and means that the market is ready to continue going higher. I think it’s only a matter time before the buyers command on short-term pullbacks, and perhaps send this market looking for my longer-term target: 8000. That’s obviously a very long-term call, but in the short term I think that we are going to continue to find buyers on dips as value hunters will continue to flock to this market. I think at this point, there is a bit of a floor down at the 7000 handle, an area that has been important more than once. However, I think it’s very unlikely that we get down to that area.
