S&P 500 And NASDAQ 100 Forecast - Friday, Feb. 10
The S&P 500 broke higher during the day on Thursday, clearing the top of the shooting star from Tuesday. This signifies that the market is ready to continue going much higher as we are now above the 2300 level. Ultimately, I think every time we pull back there should be plenty of support and we are continuing the uptrend longer-term, as the US indices lead the rest of the world. I now believe that we are going to reach towards the 2350 level next, and that the 50-day exponential moving average just below continues to offer support. Every time we pull back, it should be thought of as a buying opportunity in an extraordinarily bullish market.
The NASDAQ 100 broke higher during the day on Thursday, as we continue to extend the gains. The 5200 level was broken, and it appears that the market is trying to close of the absolute highs for the day. Because of this, it looks as if there is more than enough support to continue to push this market higher. The 5172 level below continues to be important, as it was the previous resistance. That should now be the support in this market, and I have no interest in trying to find this uptrend. If we pull back, it represents value that we can take advantage of. The NASDAQ 100 has lead the rest of the US indices higher, which in turn lead the rest of the world.
The formation that we had seen last week showed quite a bit of pressure beating against the resistance, and now that we have clear that, the market more than likely will continue to show signs of strength. Longer-term, I believe we go to the 5250-handle next, and then eventually the 5300 handle after that. I have no interest whatsoever in selling the NASDAQ 100 as it has been so strong.