S&P 500
The S&P 500 rallied a bit during the trading session on Wednesday, breaking out to a fresh high. The market is clearing the 2760 handle and looks ready to go towards the 2800 level again. At this point, I believe that the 2750 level will offer a bit of short-term support, and most certainly the 2700 level will. It’s obvious to me that the buyers are starting to take hold again, and I think that we will certainly make a significant move towards the 2800 level. The dips are to be bought, and not shorted as the market continues to behave quite healthily. If we can break above the 2800 level, then at that point I think the next target is 2850. The uptrend line has held on the longer-term charts, so I am “long only” when it comes to the S&P 500 currently.
NASDAQ 100
The NASDAQ 100 initially tried to break above the 7200 level during the day on Wednesday but then pulled back rather significantly. We bounced from there to form a hammer, and I think it’s only a matter of time before we clear the psychologically important 7200 level. It looks as if the NASDAQ 100 will probably lead the way higher, and I think there is a certain amount of support at the 7100 level that should continue to keep this market afloat. I believe that the 7000 level underneath is starting to act as a “floor, and that the buyers are looking to take advantage of any bit of value that appears in the form of a dip. Longer-term, I believe we are going to go looking towards the 7500 level.
