S&P 500
The S&P 500 initially fell during the course of the session on Monday, but found enough support at the 2040 level to turn things back around to form a massive hammer. The hammer of course is a fairly strong sign, especially considering that it is at the top of a long uptrend. There is a lot of noise above though, so I believe that we will continue to pull back from time to time and offer buying opportunities based upon value. That value should be picked up by traders in general as the Federal Reserve has step away from several of the potential interest-rate hikes that had been anticipated during the year 2016.
It is likely that the 2000 level should be relatively supportive, and potentially the floor of the market going forward. With this being the case, pullbacks will continue to be bought by me, as I believe that we will eventually break out to the upside.
Nasdaq 100
The Nasdaq 100 initially fell during the day on Monday, breaking below the 4400 level at one point. However, we had enough support just below to turn things back around and we broke above the top of the last several sessions. Because of this, it looks now as if the Nasdaq 100 is going to reach towards the 4500 level, and possibly even higher than that.
Pullbacks continue to be buying opportunities in my opinion, but they will be based on short-term charts more than anything else. This is a market that should continue to go higher based upon the Federal Reserve and its actions, plus you have to look at the foreign markets as the Nasdaq 100 tends to be very sensitive as there are a lot of exporting companies there. Ultimately, this market should continue to go higher and as a result will probably be reactive to the DAX, CAC, and Nikkei.
