S&P 500
The S&P 500 rallied during the day, making a fresh, new high as the uptrend continues. The US dollar lost a lot of strength, and that, of course, help stock markets in the United States. I think that we obviously have a significant amount of support at the 2850 handle, and most certainly at the 2800 level. I think that short-term pullbacks will offer value to the people to take advantage of, so therefore I don’t have any interest in shorting this market. I think that the market is probably going to go to the 2900 level, and then possibly to the 3000 level after that which has been my longer-term target for some time. The market I think has a ton of support at the 2800 level. If we were to break down below that level, it would probably change the overall trend eventually. There are a lot of concerns out there, but I don’t think at this point they are going to sink the market longer term.
(Click on image to enlarge)
Nasdaq 100
The Nasdaq 100 also rallied during the day, even more so on a percentage basis than the S&P 500 did. However, we have not broken to the upside, and I believe that the $7500 level will continue to be very difficult to deal with. Technology stocks have suffered a bit, and quite frankly that is probably due to sector rotation by stock market traders. I believe pullbacks are buying opportunities, and I believe that the 7200 level is a major support level, just as the 7000 level is. If we break down below the 7000 handle, the market then will unwind and perhaps change the trend overall. This is a market that I think eventually will break out, but it’s very likely that we will lag behind the S&P 500.
(Click on image to enlarge)
Comments
Log in or sign up to join the conversation.