S&P 500
The S&P 500 had a slightly negative session during most of the day on Monday, as we continue to hover around the 2800 level. It makes sense though, because it is a large, round, psychologically significant figure, and it is an area that has been scaring a lot of buyers. Now that we are going sideways, it looks likely that we are trying to build up the necessary momentum, which more than likely facilitates buyers on dips. I believe that the 2775 level should be an area of significant support, but if we break above the top of the range for the last couple of days, then I think we could go higher, perhaps reaching towards the 2880 level after that. Overall, I am bullish, and don’t have any interest in shorting as I think there are plenty of buyers underneath it will be looking for value on pullbacks.
NASDAQ 100
The NASDAQ 100 has done very little as well, as the 7400 level has offered resistance. I think if we can pull back from here, there should be plenty of buyers in the market, especially near the 7200 level. I think that if we can break above the 7400 level, then the market probably goes to the 7500 level after that, which of course is a large come around, psychologically significant number. If we can break above the 7500 level, then I think the market continues to go much higher and more of a “buy-and-hold” manner. It’s clear that the buyers are in control this market, so selling is something that I have no interest in doing. In fact, I’m not interested in selling until we break below the 7000 handle, something that doesn’t look very likely to happen.
