S&P 500
The S&P 500 initially fell during the session on Thursday, but continues to find support below the 2275 handle. Because of this, I think that eventually the market will pop higher, but it’s likely that traders were a bit cautious about holding onto positions ahead of the jobs number. The 50-day exponential moving average just below continues to offer support as well, so I believe that selling is all but impossible. Ultimately, I think that we reach towards the 2300 level, as we did previously. I have no interest in selling and believe that US indices will continue to lead the rest of the world higher, as we have seen recently.
Nasdaq 100
The Nasdaq 100 initially fell on Thursday, but found enough support to turn around and form a nice looking hammer. The hammer of course is a bullish sign, and we are more than likely going to find plenty of buyers. I think every time we dip you have to look at it is value, and I believe that we will reach towards the 5200 level. The Nasdaq 100 has been leading the US indices, and by extension the rest of the world, much higher. Because of this, I feel that every time the sellers get aggressive, the buyers will come back to punish them. We are bit overextended at the moment, but given enough time I think that the longer-term uptrend will continue to strengthen, although possibly at a much more sustainable and subtle motion.
I believe that there is a “floor” in the market at the 5000 level, and quite frankly the 5050 handle also, as it has seen quite a bit of resistance in the past. Because of this, I have no scenario in which I am willing to sell this market and I believe that we will continue to benefit from an upward motion in this market.
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