Last week was the second consecutive week of narrow range price movement.
The range for the week was only 25.31 points, compared to an average true range of 45.86.
This was also the second consecutive week of doji bars, which as you know, can mean indecision.
And both the S & P 500 and the VIX both closed to the downside, which creates a divergence.
Having said that, the VIX still has a downside objective to 9.38.? And short term charts are bearish for the VIX.
In addition, short term charts for the S & P 500 remain bullish.
The high for last week was 2,193.81 and the low for the week was 2,168.50.
A violation of either level would be significant.
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 low on Friday was exactly the minor support level at 11.33.? 12.50 should still act as resistance.
If the VIX can get above 12.50, look for it to act as support.? Should that happen, look for a move to 14.06.
S & P 500 Cash Index:?
Major level - 2,250.00
Minor level - 2,234.38
Minor level - 2,203.12 *
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
The S & P 500 continues to struggle to close above the 2,187.50 level.? For the S & P 500 to move down, it will need two closes under 2,171.88.
Minor support should still be at 2,179.70.? And the 2,175.80 level should offer minor support.
Nasd 100 (QQQ):?
Major level - 121.88
Minor level - 120.31
Minor level - 119.53
Major level - 118.75 *
Minor level - 117.97 *
Minor level - 116.41
Major level - 115.63
Minor level - 114.85
Minor level - 113.28
Major level - 112.50
115.63 should be the objective and a major support level.? Resistance should be at 117.97.
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
Major level - 134.38
The TLT continues to hold above the 137.50 level, closing at 138.71 on Friday.? A close today above 138.28 and the TLT should test 140.63.
138.48 should be a minor support level.
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 GLD closed at 127.97 on Friday. This was just under the 128.13 level, which should now be resistance.
127.35 is the next level to watch.? Two closes under that level and the GLD should move to 125.
The gold miners bullish index remains overbought at 89.29.
XLE:
Major level - 75.00
Minor level - 74.22
Minor level - 72.66
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
The objective should be to 71.88.
71.88 should be a difficult level to breach on the first attempt.? If it fails to get through it, look for a move down to 68.75.
68.75 should be strong support.
Apple:
Major levels for Apple are 112.50, 106.25, 100, 93.75, and 87.50.
Objective should still be up to 112.50.? However, Apple needs to clear the 109.38 level first.
Support should be at 107.81 and 108.20.
Watch list:
Bullish Stocks: PCLN, BIIB, NTES, BIDU, FDX, APD, PH, AVGO, AET, UPS, UTX, KSU, FANG, EOG, NSC
Bearish Stocks:? CMG, SBNY, LLY, LPNT, SBUX, AN, LEN, FSLR, SABR, RLGY, SCTY, JBLU
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Be sure to check earnings release dates.
