S&P 500
The S&P 500 rose during the course of the session on Wednesday, breaking above the 2060 handle. That being the case, it looks as if the market is ready to go higher. If we pullback from current levels, there should be plenty of buyers below, and with a supportive candle it’s more than likely going to be an opportunity to take advantage of value anyway. At this point in time, the 2020 handle should be supportive, and of course so should the 2000 level. Given enough time, I anticipate that this market will reach towards the 2100 level but it may take some time and a bit of momentum building in order to get there. I have no interest whatsoever in selling as I believe that the Federal Reserve stepping away from some of the interest-rate hikes will be very positive for this market.
Nasdaq 100
The Nasdaq 100 rose during the day, testing the 4520 level. The fact that we broke above 4500 is pretty significant, but we did pull back as one would expect due to the large, round, psychologically significant number, and of course all the noise above there. With that being the case, I feel that the market will sooner or later will get above there, but we may have to pull back from time to time on short-term moves that we can take advantage of.
The 4400 level below should continue to be supportive, but that being the case it’s likely that the market will turn back around sooner or later so with this we remain very bullish of this market, and have no interest whatsoever in selling as the Federal Reserve should continue to support the stock markets due to the fact that the loose monetary policy tends to force money into the stock markets in the longer term as bond markets offer almost nothing. With this, I remain very bullish of the Nasdaq 100.
