Nasdaq 100
: 2677.35
Short-Term Trend: Uptrend
Outlook: Nasdaq 100 pulled back early last week as expected but our favored entry level (2600) was not reached. Then the market easily rallied to the 2682 Fibonacci level. Now, while the daily chart remains quite bullish, I think the market is likely to spend a week or two in sideways consolidation below the 2682 level. And if a pullback toward 2600 develops, it will be likely welcomed as a good buying opportunity. Going forward I expect a move 2762....
Strategy: Longs favored at 2600 against 2555. Target=2760
S&P500
S&P500: 1414.59
Short-Term Trend: Uptrend
Outlook: The expected pullback twd 1395 did occur last week and our long strategy was elected. Now, the daily chart looks quite positive, but I think that we will likely see some choppy sideways trading below 1430 in the next week or two. Then, the market is likely to move higher toward 1454 Fibonacci level.
With this in mind, holding long makes sense here (or buying on pullbacks if one is not long). The key support is at 1378 and then at 1365. A move back below these levels will negate the current bullish view and will signal the decline from the September top has resumed.....
Strategy: Holding long from 1395 is favored. Stop=1365. Target=1455.