S&P 500
The S&P 500 rallied a bit during the trading session on Tuesday, breaking above the 2800 level. That’s a very good sign, and I think that the market is ready to continue to press higher. I see a significant amount of resistance at the 2820 handle, so the next couple of days could be noisy but it certainly looks as if the buyers are going to continue to jump into this market and reach to higher levels, especially near the 2880 handle. There is a lot of support underneath, so I like the idea of buying pullbacks as value and it appears that the market is willing to pick up the pieces every time we rollover. We have seen a lot of impulsivity to the upside, so therefore I think we will continue to see more.
NASDAQ 100
The NASDAQ 100 rallied slightly during the day on Tuesday, reaching towards the 7400 level again. I think that the market will eventually break higher to the upside, and it should continue to use the 7200 level as a bit of a floor and a springboard, so I like buying pullbacks. I recognize the 7500 level is the most likely target from here, and I believe that we will eventually reach there. The bottom of the overall uptrend I think is closer to the 7000 level, so if we were to break down below that level I think it would be very negative, perhaps sending the market down to the previous uptrend line. Buying on the dips continues to be the best way to play this market from what I see, as we continue to see a significant amount of resiliency in this trend.
