The market continues to climb after the Fed decided to hold steady on interest rates.
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And since bottoming at the 2,125 level, the S & P 500is almost back to the 2,187.50 level.
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With a high yesterday of 2,179.99, it is within 7.50 points of that level.
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With the upmove in the markets, the VIX has now fallen off a cliff.? The VIX closed under 12.50, at 12.02.
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The question now is what is the next news event that will rattle the markets?
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You have to think something is coming because the VIX is now back at all time lows.
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I mentioned that short term resistance is around the 2,168area and the S & P 500 blew right through that.? At this point, that now becomes support.
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Yesterday, you should have sold next week's $17 call on ETE. That mean we have three positions expiring next Friday.
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Continue to follow the levels.
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Here are the key levels for the markets.
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VIX:?
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Major level - 18.75 *
Minor level - 17.96 *
Minor level - 16.41
Major level - 15.63?
Minor level - 14.85?
Minor level - 13.28?
Major level - 12.50?
Minor level - 11.72
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The VIX broke under the major 12.50 level.It will need two closes under 11.72 to move down to 9.38.
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12.50 should act as resistance, along with 14.06.break under 12.50, a move to 9.38 should be forthcoming.
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S & P 500 Cash Index: ?
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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?
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Watch how the S & P 500 reacts around the2,187.50 level, which is the current objective.
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Minor support exists at 2,171.90.
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If the S & P 500 takes out the 2,193.81 prior high, it paves the way for the move up to 2,250.
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Buy against support. ?
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Nasd 100 (QQQ): ?
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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 - 114.84
Minor level - 113.28?
Major level - 112.50?
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The QQQ took out the objective we have been calling for, which was 118.75.? It closed at119.09.
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To move up to 121.88, it will need two closes above 119.53.
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Expect lower levels to act as support, especially118.75 now that it has been violated.? Also, 117.97should offer support.
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Minor resistance is at 120.31.
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TLT: ?
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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 *
Minor level - 133.60?
Minor level - 132.03
Major level - 131.25
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The TLT came within 25 cents of the 137.50 level.
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Minor support should be at 135.94.? Expect a move back up to 140.63.
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GLD:?
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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
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The GLD hit the 128.13 level before pulling back to close at 127.57. ?128.13 should act as resistance at this point.
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Minor support is at 127.34.
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XLE:?
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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
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The XLE bounced up to 69.46 before settling at 68.55.
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Expect 67.96 to offer support.? And 68.36 should also offer support.
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FXY:
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Major level: 96.88
Major level: 96.09
Major level: 95.31
Major level: 94.53 *
Major level: 93.75 *
Major level: 92.97?
Major level: 92.19
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95.70 is a short term support level and the FXY held support at that level yesterday.
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A break under 95.70 and expect the FXY to head lower.? If that level holds as support, look fora move up to 97.
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Apple:
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Major levels for Apple are 118.75, 115.63, 112.50, 106.25, 100, 93.75, ?and 87.50.
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A close today above 114.06 and expect Apple to head up to 118.75.? Not much to say on Apple except buy against short term support.
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Watch list:
Bullish Stocks: AMZN, NTES, FB, CME, BABA, WDAY,BURL, BLUE, R, LVS, PAG, STI, INTC, MGM
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Bearish Stocks: ?AAP, BA, ANTM, DIS, HAR, SIG, TPX,GRA, ESRX, CTSH, ACHC, WFC, MLNX
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Be sure to check earnings release dates.
Trade Alert - (TLT) September 23, 2016