Once again, the high for the day yesterday tested the 2,062.50 level.? The actual high for the day for the S & P 500 was 2,063.01.? Within 50 cents of that major level.
The bearish scenario had been set up with two closes above the 14.06 level in the VIX,?
Actually, the VIX had three days that closed above that level.? That meant the objective to the upside should be to 18.75.? The VIX ralled up to a high of 16.77, just short of the 17.19 level and pulled back.
The VIX was overbought and the S & P 500 was oversold.? And this morning, it appears that the markets should open to the upside after this oversold condition.
Just a quick note to thank those members who have sent me emails sharing trades they have done using these price levels.? It is always nice to hear results that are achieved using the resistance levels.?
Here are the key levels for the markets.
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VIX:
Major level - 25.00
Minor level - 23.44
Minor level - 20.31
Major level - 18.75
Minor level - 17.19
Minor level - 15.63
Minor level - 14.06 *
Major level - 12.50
The VIX closed at 16.16,? just above the minor 15.63 level.? The VIX should open lower this morning with a push up in the market.
14.84 would be a level to watch closely. If the VIX drops under that level, it could continue to drop.? Having said that, on the outside, 14.06 should be strong support.
S & P 500 Cash Index:?
Major level - 2,125.00
Minor level - 2,109.38
Minor level - 2,078.12
Major level - 2,062.50 *
Minor level - 2,046.88 *
Minor level - 2,015.62
Major level - 2,000.00
2,062.50 was retested and the S & P 500 failed right at that level.?? Yesterday's low was 2,033.80, just 2.50 points above the 2,031.30 support level.
At this point, both 2,054.70 and 2,046.88 should act as resistance.
For the market to reverse to the downside, you want to see the VIX find support and begin to head up.
Nasd 100 (QQQ):?
Major level - 112.50
Minor level - 111.71
Minor level - 110.16 *
Major level - 109.38
Minor level - 108.60
Minor level - 107.03
Major level - 106.25
Minor level - 105.46
Minor level - 103.91
Major level - 103.13
The QQQ closed at 109.08 yesterday, just under the major 109.38 support level.? At this point, 108.60 should be strong support.
If the QQQ opens above the 109.38 level, it should act as support.
TLT:?
Major level - 134.38
Minor level - 133.59
Minor level - 132.03 *
Major level - 131.25 *
Minor level - 130.46
Minor level - 128.91
Major level - 128.13
The TLT jumped up and closed at 132.85 yesterday.? If it can close above 132.03 today, the objective should be up to 134.38.
132.03 should now be support.? And the major 131.25 level should also be support.
GLD:
Major level - 125.00
Major level - 121.88
Minor level - 121.10
Minor level - 119.53
Major level - 118.75 *
Minor level - 117.96
Minor level - 116.41 *
Major level - 115.63
Minor level - 114.85
The GLD did hit the 118.75 level yesterday, hitting a high of 118.85, before closing at 118.61.? To move higher, the GLD will need two closes above 119.53.
112.50 should be major support and 121.88 major resistance.
XLE:
Major level - 65.63
Minor level - 64.85
Minor level - 63.28
Major level - 62.50
Minor level - 61.72
Minor level - 60.16 *
Major level - 59.38
Objective for the XLE should still be up to 62.50.
Major support at 60.94 and 60.55.
Apple:
Major levels for Apple are 112.50, 106.25, 100, 93.75, and 87.50.
Apple sold off and closed at 108.54.? A close today under 110.94 and it should test the 106 level.
Support should be at 107.81.? If it breaks under this level, look for Apple to move lower.?
However, it is firms up there, look for a bounce.
Watch list:
Bullish Stocks: LMT, BCR, NOC, ULTA, MMM, AVGO, BDX, STZ, KMB, HD, THS, EW,
PLCE, ATO, RS, GIS
Bearish Stocks: CMG, AGN, BWLD, DE, GD, FOSL, SKX, VRX, CRR, SHLD, CONN
Be sure to check earnings release dates.
