The market continued to trade in a tight range yesterday with the S & P 50 closing 2.76 points to the downside.
Yesterday was the 13th day it traded in this tight range. The longer it stays in this range, the bigger the move will be when it finally breaks out.
The VIX has been bouncing around the 12.50 level, but has not decidedly committed to a move either way.
It again failed to get above 13.28, and closed just under 12.50, at 12.44.
The down to up volume picked up slightly.? Yesterday it read 2.17 and the prior day it was .60.?
Pre open the markets are set to open slightly bearish.
Continue to follow the VIX levels and support levels for the S & P 500.
Earnings continue this week.? We will hear from TSLA and PCLN later in the week.
Here are the key levels for the markets.
VIX:
Minor level - 17.96
Major level - 15.63
Minor level - 14.85
Minor level - 13.28 *
Major level - 12.50 *
Minor level - 11.72 *
Minor level - 10.15
Major level - 9.38
The key level to the upside still remains at 13.28.
I mentioned yesterday that if the VIX closed under 11.72, it should drop. However, the VIX managed to close above it, so it would still need two closes under 11.72 to drop to 10.94.
Short term resistance should be at 12.50 and 13.28. 12.11 should also be a level to watch.
S & P 500 Cash Index:?
Major level - 2,187.50 *
Minor level - 2,171.88 *
Minor level - 2,140.62 *
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
2,171.88 should continue to be a level to watch. And the S & P closed just under it yesterday.
2,168 should be a short term support level.
2,179.70 should offer resistance on a drive to the upside.? The market failed to get through it yesterday, when it stalled at 2,178.29.
Nasd 100 (QQQ):?
Major level - 118.75
Major level - 115.63 *
Minor level - 113.28 *
Major level - 112.50 *
Minor level - 111.72
Minor level - 110.16
Major level - 109.38
Minor level - 108.60
No question the QQQ has been taking the lead lately and has been the strongest market.
Not only did it take out 115.63, but it took out 118.75.
The QQQ spiked up to a high of 118.78 yesterday.
At this point, 112.50 should be major support.
118.57 is also the upper band on the daily chart, which coincides with the resistance level.
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
The TLT dropped down and closed under the 140.63 level.? This should now be resistance.
Two closes under 139.85 and the TLT should drop to 137.50.
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
The objective should be up to 131.25, but watch how the GLD reacts at this level.
Like the TLT, this will be the second drive at 131.25.
If the GLD gets through 131.25, it should continue higher.
XLE:
Major level - 71.88
Minor level - 71.10
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
The XLE broke under 65.63, closing at 65.16.
Two closes under 64.85 and the XLE should test 62.50, which should be strong support.
64.84 should be a minor support level.
Apple:
Major levels for Apple are 106.25, 100, 93.75, and 87.50.
Apple did in fact break out above the midband, closing at 106.05.? It came within 10 cents of the 106.25 level.
The midband should now act as support, which is 104.61.
Short term resistance is at 104.69.? 109.38 should offer short term resistance.
Watch list:
Bullish Stocks: ORLY, NTES, AMGN, AVGO, UNH, ZBH, CMI, UTX, CME, ALGN, CTXS, CAT, BURL, BDC, DECK, QCOM
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Bearish Stocks:? WBA, WAB, LPNT, APC, HIG, GIII, ALR, KR
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Be sure to check earnings release dates.
