S&P 500
The S&P 500 initially pulled back slightly during the trading session on Friday, but then broke above the 2800 level. That’s an area that has been resistance previously, and I think at this point breaking above that level would be a very strong sign. I think short-term pullbacks could occur, but those will more than likely offer buying opportunities, as I think that the market has shown its proclivity to go higher, and obviously the global markets are reacting positively to better than expected Bank earnings out of the United States. I think that it will be a bit noisy in the way of, but if you are okay with volatility, it looks as if we are trying to go higher and will probably look for the 2875 level.
NASDAQ 100
The NASDAQ 100 was relatively quiet during the trading session on Friday, but most importantly was at fresh, new highs. We had an extraordinarily bullish candle form during the Thursday session, and that being the case I think that the market should continue to go higher over the longer-term, and short-term pullbacks should be nice buying opportunities. The 50 EMA looks very healthy, and it has caused a lot of support recently. I believe that the “floor” in the market right now is closer to the 7000 level, and at this point I would be stunned to see the market break down and test that level, at least in the next several days. Currently, I have a target of 7500 in my sites, but it’s going to take a certain amount of “whistling past the graveyard” when it comes to global headlines to get there.
