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Today closes out the month of October.? And for the month, the S & P 500 will most likely have a bearish candle, unless it can rally about 23 points today.
Earnings season continues, but the major news event perhaps will end up being the election here in the United States in just over a week.
Friday?s price action showed how sensitive the market is to fears affecting the election.
After rallying back Friday, the S & P 500 was sitting right on our confirming line of 2,140.62.? Actually, the S & P 500 peaked 10 cents above that level.
Then the news came out that further examinations of additional emails would be investigated.? At that point, the market dropped straight down from our level to a low of 2,119.36.? This was a drop of 21.36 points in only one hour.
The market ran from our resistance level to the 2,125 objective and ended up closing just above the 2,125 level.
The retest of 2,140.62 happened as suspected.
For the week, the S & P 500 closed 14.75 points to the downside.? And the VIX was up 21.36%.
The question now is where do we go from here?
I would expect volatility to continue until after the election and results are known.
And the question now is will the 2,125 level act as support??
On the downside, a move under 2,109.40 would indicate further room on the downside. If the S & P 500 did drop to the next major level, which is 2,062.50, it would still mean the uptrend is intact.
We should know this week what direction the next minor move should go.? 2,137 should be a resistance level based on the weekly price bar.? Also, for the S & P 500 to move higher, it will need two closes above 2,140.62.
Continue to monitor the levels for entry points.
Here are the Key Levels for the Markets:
$VIX:
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
The VIX closed Friday at 16.19, or about 20 cents under 16.41.? It would still need two closes above 16.41 to confirm a move up to 18.75.
The short term charts for the VIX have moved into uptrends, so further upmoves should be expected.
Friday, the VIX did take out 16.41 and hit a high of 17.35 before settling at 16.19.
Short term levels for the VIX at 14.84 and 17.19.
$SPX:
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 did hit the 2,125 objective.? Minor short term support levels are at 2,121.21 and 2,117.20.
On the upside, 2,136.70 could offer resistance.
QQQ:?
Major level - 121.88
Minor level - 121.10
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
The downside objective for the QQQ should be to 115.63.? I would expect this level to offer support.
116.41 should offer minor support.
TLT:?
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
Minor level ? 130.46
Minor level ? 128.91
Major level ? 128.13
?A close today under 130.46 and the TLT should drop to 128.13.
131.25 should offer resistance.? 129.69 should be minor support.
GLD:
Minor level - 124.22
Minor level ? 122.66
Major level ? 121.88
Minor level ? 121.10
Minor level ? 119.53 *
Major level ? 118.75
Minor level ? 117.97
The GLD did take out the 121.88 level, with a high of 122.48 before closing at 121.58.?
Minor support is at 119.53.? And if the GLD had two closes above that level, it would want to move up to 125.? However, 121.88 should be resistance.
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
The XLE is trading just above the 68.75 level.? I would not expec
t the XLE to drop much further than 67.96.
Also, 68.36 should be minor support.
FXY:
Major level: 96.88
Minor level: 96.49
Minor level: 95.70
Major level: 95.31
Minor level: 94.92
Minor level: 94.14
Major level: 93.75 *
Minor level: 93.36
Minor level: 92.58 *
Major level: 92.19
Minor level: 91.80
Minor level: 91.02
Major level: 90.63
The FXY dropped to 91.48 before rallying to close at 92.20.? Two closes above 92.58 and the FXY should move up to 93.75.
91.60 should now be support.
AAPL:
Major levels for Apple are 118.75, 115.63, 112.50, 106.25, 100, 93.75, and 87.50.
Apple dropped and closed at 113.72 on Friday.? It is approaching the 112.50 level, which should offer support.? 110.94 should be support, but if it is violated, expect Apple to continue lower.
WATCH LIST:
Bullish Stocks: NOC, GS, BA, MA, NVDA, AKAM, QCOM, MSFT,
Bearish Stocks:? CMG, REGN, AGN, CI, KMB, VRTX, ESRX, RARE
Be sure to check earnings release dates
