S&P 500
The S&P 500 fell initially during the course of the day on Tuesday, testing the 2040 level for support. We found it there though, and therefore ended up turning back around and formed a hammer. Obviously, I feel that this is a very bullish sign and as a result if we can break above the top of the range during the course of the Tuesday session, the market should then go to the 2100 level. I think the pullbacks also offer buying opportunities, as the 2000 level below should be the “floor” in this market going forward, and that being the case I am essentially “buy only” at this point in time as the Federal Reserve has step away from at least two interest-rate hikes this year.
Nasdaq 100
The Nasdaq 100 initially fell during the course of the day on Tuesday as well, but the 4400 level has offered quite a bit of support. By doing so, we turn right back around to form a bit of a hammer, and as a result it looks like we should continue to see bullish pressure going forward. On top of that, I believe that the market should continue to go higher, reaching towards the 4500 level. Any pullback from here should offer plenty of value in a market that looks very bullish at this point. On top of that, I believe that the 4300 level below is essentially going to be the “floor” in this market. I have no interest in selling, as the Nasdaq 100 tends to outperform the other indices in the United States anyway.
Pay attention to our European and Asian markets, as the Nasdaq 100 tends to be very sensitive to global markets as there are quite a few companies on this index that export massive amounts of technology around the world.
