The S&P 500 rallied during the session on Wednesday, breaking above the 2700 level. In fact, we went reaching towards 2720, but found enough resistance or to roll over and form a less than impressive bullish candle. I think that short-term pullback is likely, but I anticipate that there is support extending down to the 2680 handle. I look at short-term pullbacks as buying opportunities, perhaps a value proposition. Alternately, if we can break above the 2720 handle, then I think the market goes looking towards the 2800 level after that. If we can stay out of a trade war and keep the United States from getting overly involved in Syria, we may be able to pay attention to earnings reports in the United States to trade this market. So far, they been reasonably decent, and I think we should continue to go higher.
The Nasdaq 100 also was volatile during the trading session on Wednesday, showing the 6800 level to be supportive enough to continue going higher. The 6900 level above is a short-term target, but I think that short-term pullback should be buying opportunities, all the way down to at least the 6700 level. I think that the longer-term target is the 7000 level, which has been important in the past. I think that if we can break above there, the market should continue to go much higher, allowing it to go to the 7200 level.
I think that if we fall back from here, the bottom of the overall uptrend is the 6500 level. I like the idea of buying the Nasdaq 100 if we can stay out of the trade war, because tech stocks are going to be especially sensitive to any sanctions the US or China put on each other.