S&P 500 And Nasdaq 100 Forecast – March 8, 2016

S&P 500

The S&P 500 went back and forth during the day on Monday, ultimately breaking above the 2000 level towards the end of the day. However, we have not broken above the top of the shooting star from the Friday session, which is exactly what I need to see to start buying again. I recognize that there is a lot of noise above, so it is going to be a tough fight to get to the top again at the 2080 handle, but it is possible. I feel that the market will more than likely grind its way higher, and the key word is just that: grind.

I think pullbacks at this point in time will ultimately be bought, and could be thought of as potential value. I think that given enough time, buyers will recognize that the market is offering that value, and they will flood the marketplace. I have no interest in selling, as I think there is an essential floor in the markets or near the 1950 handle.

Nasdaq 100

The Nasdaq 100 fell significantly during the day but found quite a bit of support at the 4270 level. The hammer that formed after the bounce though was a positive looking candle in the sense that it is well within the consolidation area that we have been in before, and as a result it’s very likely that the buyers are going to continue to try to push this market higher. The 4360 level above will be resistive, but if we can break above there the market should continue to go to the 4500 level.

Any pullback at this point in time is going to have to deal with quite a bit of support, so I look at pullbacks as potential value plays. I have no interest in selling the Nasdaq 100, and I believe that most of the market agrees.