S&P 500
The S&P 500 rallied during trading on Tuesday, after initially selling-off in reaction to the United States levying more tariffs against China, but we have turned around and rally rather significantly. We broke above the 2900 level, which of course is a bullish sign. However, when I look at this chart I recognize that we have a little bit of resistance near the 2915 level, so I think that short-term pullbacks are necessary to start buying again. This will give us the momentum necessary to continue to break out to the upside and reach towards much higher levels. I think that short-term pullbacks are opportunities, and I think it gives us an opportunity to pick up value. The 2850 level underneath is currently the “floor” in the market as we have been so bullish as of late. We will be volatile, but I think that we go higher eventually.
Nasdaq 100
The Nasdaq 100 broke below the uptrend line initially during the day but turned around to break above the 7500 level. However, we are struggling a little bit ahead of the spinning top from Friday, so don’t be surprised at all if we have a pullback during the day, but I also think that the uptrend line will continue to be important. If we were to break down below the 7425 handle, then I think the market will probably unwind towards the 7250 level. I do believe that we still have plenty of reasons to go higher, but of course there is going to be a massive amount of volatility on the way. If we do break down, it could be rather quick and would be reactionary to some type of headline.
