S&P 500
The S&P 500 rallied during the Thursday session, approaching the 2475 handle. A break above there is significant, and should send this market looking towards the 2500 level. However, today is the Nonfarm Payroll Friday, and that of course has a massive effect on where the market goes next. This is obviously a “buy on the dips” market, and unless we break down significantly below the 2425 handle, I think it will continue to be so. Quite frankly, I would love to see some type of negative reaction to the jobs number that I can start buying at lower levels. Otherwise, we will have to clear the 2500 level for the next move higher. Expect volatility, you always get that on one of these days, but given enough time I think the buyers will flex their muscles.
Nasdaq 100
The Nasdaq 100 is closing in on all-time highs again, and I think the next target of course is the 6000 handle as it is a large, round, psychologically significant number. Pullbacks of this point should see plenty of support near the 5900 level, and of course the uptrend line that is just below there. I think that the Nasdaq 100 will continue to lead the rest of the stock indices in the United States higher, especially considering that Apple and Facebook are such a huge part of this index. Ultimately, I think that buying the dips in this market works as well, and that the stock market is certainly ready to continue going higher.
Selling is all but impossible, least not until we break below the 5700 level, which is something that isn’t going to happen today. If it did, that would be rather catastrophic, and more than likely would have been a result of some news event.
