S&P 500

The S&P 500 has rallied again during the trading session on Friday, as traders celebrate the idea of the Chinese coming to the table. Because of this, we rallied again and filled the gap from earlier in the week. The question now is whether or not we can continue to go higher. I believe that the market continues to be very noisy overall, and I think that short-term pullbacks should be buying opportunities. I also recognize that the 2800 level should be massive support, and that it’s only a matter of time before buyers would come in on those dips unless of course tensions get worse between the Americans and Chinese. A break out to a fresh, new high should send this market to the 2900 level, and then perhaps even the 3000 level. Earnings have been good, so barring external factors, there should be willing buyers.

Nasdaq 100

The Nasdaq 100 fell during the trading session on Friday, reaching down towards the 7300 level. By finding support there, we have formed a hammer again, and it looks as if there are buyers willing to step in here as well. I think that the markets will continue to be very noisy, and there is perhaps a bit of a rotation from technology stocks into Staples, meaning that the Nasdaq 100 may be a bit of a laggard as compared to the S&P 500 and the Dow Jones Industrial Average. Nonetheless, I do think that there are buyers and I think that selling is all but impossible. I recognize the 7200 level as supportive as well, so I believe that we are going to continue to see buyers on these dips. The 7500 level above continues to offer resistance, but eventually, we will get above it.