Yesterday once again saw the S & P 500 test the major 2,062.50 level.? The high for the day was 2,062.93, just 43 cents above the key level.
That was the fifth consecutive day that 2,062.50 was tested. And it closed at 2,041.99.
The close was under the minor support level of 2,046.88, which means that if it closes today under that level, the objective to the downside should be 2,000.
I do want to point out that last Thursday, the S & P closed under that level, at 2,041.91.?
However, the next day it managed to close above it at 2,047.60.? Based on that, the market still needs two consecutive days closing under the level to anticipate the next move.
The alert for this is when the VIX approached the key support level of 12.50.? It did not manage to quite get there, stopping 50 cents above it.? The other alerts are when the sentiment indicators approach the 80 level.?
At this point, 2,046.88 should be a key level for the S & P 500 today.? If it gets under that level, it should act as resistance.
Alcoa reported last night, starting the earnings season and is down about 3% pre market.
Here are the key levels for the markets.
VIX:
Major level - 25.00
Minor level - 23.44
Minor level - 20.31
Major level - 18.75 *
Minor level - 17.19
Minor level - 15.63
Minor level - 14.06 *
Major level - 12.50 *
I mentioned yesterday that 14.84 should be support for the VIX and it just so happened that the low for the day was 14.83.
The fact that the level held as support was the indication that the markets should sell off.
At this point, I would expect 15.63 to act as support, with an objective up to 18.75.
?
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
2,046.88 should be a key level today.? Watch how the S & P reacts around this level.
A close under that level, and I expect a move down to 2,000.
Minor support is at 2,031.30.? And minor resistance at 2,054.70.
Nasd 100 (QQQ):?
Major level - 112.50
Minor level - 111.71
Minor level - 110.16 *
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
The QQQ closed yesterday exactly on the 108.60 level.? A close today under that level and the objective should be to 106.25.
Minor support at 107.81.? Resistance at 109.38.
TLT:?
Major level - 134.38
Minor level - 133.59
Minor level - 132.03 *
Major level - 131.25 *
Minor level - 130.46
Minor level - 128.91
Major level - 128.13
The major 131.25 level should continue to act as support.? Minor resistance at 133.59.
130.47 should also be minor support.
GLD:
Major level - 125.00
Major level - 121.88
Minor level - 121.10
Minor level - 119.53 *
Major level - 118.75
Minor level - 117.96
Minor level - 116.41
Major level - 115.63
Minor level - 114.85
A close today above 119.53 and the objective should be to 121.88.
118.75 should now be support.
XLE:
Major level - 65.63
Minor level - 64.85
Minor level - 63.28 *
Major level - 62.50
Minor level - 61.72 *
Minor level - 60.16
Major level - 59.38
63.28 should be a difficult level to get through on the first attempt.? 61.72 should be support at this point.
The XLE is approaching significant resistance levels on the daily chart. Namely, the 200 ema, which is 63.59 and the midband, which is 66.06.
Apple:
Major levels for Apple are 112.50, 106.25, 100, 93.75, and 87.50.
Apple is still in uptrends on it's shorter term charts.? 106.25 should be an area of support and the price objective.
Watch list:
Bullish Stocks: AYI, STZ, KMB, BDX, MCD, JNJ, DPZ, VMC, EW, WYNN, ADP, THS
Bearish Stocks: PCLN, CMG, AGN, BWLD, CME, EXPE, DDS, VFC, FL, UAL, AKAM
Be sure to check earnings release dates.
