The S & P 500 is now within 14 points of it's 2,125 objective.? And the
VIX stopped yesterday right at 12.50, before reversing and closing at 13.28.
The question is will the VIX make a sharp move up?
In the last three years, the VIX made three price spikes.? In October of
2014, the VIX ran up to 31.06.? The prior bottom was 11.24.
Then in August of 2014, the VIX ran to a high of 53.29. It basically
spent most of the year bouncing off the 12.50 level.
Finally, in January of 2016, the VIX ran to a high of 32.09.? The major
bottom before that run was 12.80.
The point now is that the VIX should find support.? And it could make
a drastic move up.? The upmoves tend to be sharp and fast.
However, each major upmove was proceeded by a spike up in the VIX
before it made it's big move.
We also need to combine the VIX with the S & P 500 price objective and
at this point, the objective is still to the upside.? As the market is very close
to hitting it's next major level, we should have a good idea of the next
move in a very short period of time.
?
Here are the key levels for the markets.
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 *
Yesterday it stopped exactly at 12.50.
14.06 is the key level because if the VIX has two closes above that
level, it should move up to 18.75.
Resistance should be at 14.84.
?
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
2,125 is still the active objective.
2,109. 38 is the level to watch at this point. If the S & P can
get through that level, 2,125 should be hit.
If it can't, look for a pullback.
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
Objective is still to 112.50.
The QQQ found support at the 110.16 level yesterday.
Minor resistance at 110.94.
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 finally broke and closed at 129.46. A close
today under 132.03 and the TLT should test 128.13.
Watch the 128.91 level for 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 still needs two closes above 119.53 to move up to 121.88.
118.75 should be support.
Still biased for a move down based on the fast upmove the GLD as made.
XLE:
Major level - 68.75
Minor level - 67.96
Minor level - 66.41
Major level - 65.63
Minor level - 64.85
Minor level - 63.28 *
Major level - 62.50
Minor level - 61.72 *
A close today above 66.41 and the objective should be to 68.75.
Support is at 65.63.
Apple:
Major levels for Apple are 112.50, 106.25, 100, 93.75, and 87.50.
Apple is trying to hold the 106.25 level. If it does it will retest 112.50.
Watch list:
Bullish Stocks: GOOGL, AMZN, AYI, BIDU, BDX, MMM, LLL, HD, ACN, HON, ALGN
Bearish Stocks: AGN, PANW, AGU, TSO, DDS, ZBRA, VLO, AKAM, STX, NTAP
Be sure to check earnings release dates.
