S&P 500
The S&P 500 ended up relatively flat during the session on Monday, which is a good sign considering how much in the way of volatility that we have out there and of course Donald Trump suggesting that $200 billion worth of tariffs would still be applied to China before the two countries speak again. All things being equal, the fact that we turned around and held the 2900 level as support is a good sign as well. I think we may drift a little bit lower looking for buying pressure, but ultimately I do anticipate that we are going to go higher. On the chart, I have several uptrend lines that have held over time, and I think of that you should look at this as a “buy on the dips” scenario overall, I think that the market participants continue to look to the upside.
NASDAQ 100
The NASDAQ 100 has closed for the day slightly negative, but ultimately the uptrend line has held. I believe that the market will continue to go higher as long as we can stay above this uptrend line, and it’s likely that we could turn around and go towards the highs again. Overall, I think if we break down below the uptrend line, and then of course the 7400 level. Overall, I think that the market will continue to be very volatile, but at this point it’s likely that we will see a lot of choppiness so short-term trading is probably going to be we you have to do. I look at short-term charts for trading opportunities on the upside only. Short-term pullbacks offer value the people will continue to take advantage of.
