Yesterday, we were looking for support in the area of 2,067.? The low for the day was 2,074.02, so it held about 7 points above the weekly support line.
The reversal came when the VIX sold off.? The VIX hit a high of 17.04 before dropping to close at 14.96.
As I mentioned yesterday, you wanted to see the VIX sell off as the indication the market should move up.
Both the gold market and the TLT are at overbought levels not seen in a long time.
Here are the key levels for the markets.
VIX:
Minor level - 22.66
Major level - 21.88
Minor level - 21.09
Minor level - 19.53
Major level - 18.75
Minor level - 17.96 *
Major level - 15.63 *
Minor level - 14.85 *
Minor level - 13.28
Major level - 12.50
Look for a retest of the 12.50 level.?
Minor levels are 17.19, 15.64 and 14.06.
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
Minor level - 1,984.38
Minor level - 1,953.12
Major level - 1,937.50
The S & P 500 stopped about 4 points under the minor 2,078.10 support level yesterday.
2,097.70 should be a minor support level and if the S & P can close above it today, look for the move up to 2,125.
Nasd 100 (QQQ):?
?
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
Minor level - 102.34
107.82 should be minor support at this point.
Objective should be to 109.38.
TLT:?
Major level - 143.75
Minor level - 142.96
Minor level - 141.41
Major level - 140.63
Minor level - 139.85
Minor level - 138.28
Major level - 137.50
Minor level - 136.72
Minor level - 135.16 *
Major level - 134.38
The TLT is overbought and trading above the upper band on the daily and the weekly charts.
At this point, 143.75 is a major level to the upside that I doubt the TLT will get through.? If it does, expect it to move higher and rate to drop even further.
Starting to look like a decent short candidate.
GLD:
Major level - 131.25
Minor level - 130.46
Minor level - 128.91
Major level - 128.13
Minor level - 127.35
Minor level - 125.78 *
Major level - 125.00
Minor level - 124.22
Like the TLT, the GLD is overbought.? It is almost trading at the 131.25 level.
If the GLD gets through this level, expect it to move higher.
Having said that, initiating long positions here is very risky.
Bullish % interest for the gold miner sector still reads 100%.
Not the time to be thinking long.
XLE:
Minor level - 69.53
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
65.63 should be major support for the XLE.
A break out above that level paves the way for a move up to 75.
Minor support remains at 66.41 and 67.19.
Apple:
Major levels for Apple are 106.25, 100, 93.75, and 87.50.
Apple closed just above 95.31 yesterday.? Look for a move up to retest 100.
Minor support is at 94.53 and 93.75.
Watch list:
Bullish Stocks: NTES, CASY, MMM, SYK, JNJ, CVX, CCI, DTE, POOL, XOM, ALGN, PNW, ETR, DGX
?
Bearish Stocks:? CMG, UHS, WBC, MA, RHT, WAB, RCL, NTRS, VLO, CCL, CAKE, CBG
?
Be sure to check earnings release dates.
