The S & P 500 stopped yesterday at 2,039.74 and rallied the balance of the day to take out the major 2,062.50 level.? It closed just under it at 2,061.72.? Quite frankly, I would have preferred to see a close above that key level.
The price action was quite bullish, with volume picking up. And the down to up volume also dropped, which is also a good sign.
In looking at a daily chart, you can see that the S & P has been holding support right at the mid extreme bollinger band.? That level is 2,033.26.
Since closing above it back on March 17th, the S & P has spent 17 days just above the level.
For the market to correct, you would expect a close under that level.? But, it has not happened.? And until it does, you need to stay with the current momentum.
Having said that, I would prefer to see a close or two above 2,062.50.? And preferably above the 2,078.12 level.
As I mentioned in a prior update, if that should happen it is possible to see a move up to 2,250.
The major concern is that the VIX is approaching long term support.? In fact, yesterday, it closed back at 14.85.? We may see the final flushout in the VIX before we see a move up in the markets.
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 *
Yesterday's close was 14.85, just one cent above the previously mentioned support level.
For the VIX to drop to 12.50, I would want to see two closes under 14.84.
At this point, I would expect 15.63 to act as resistance, because the VIX broke under it.
?
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
Pre market, the S & P is set to open to the upside.? It should open above 2,062.50, so look for that level to act as support.
Watch how the market reacts around the 2,078.12 level.
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 also reversed and closed at 109.51, just above the 109.38 level.
Minor support at 109.98.? Resistance at 110.16.
To move higher, the QQQ will need two closes above 110.16.
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
I mentioned yesterday that 130.47 should be minor support.? Yesterday's low was 130.52, just 5 cents above it.
To move lower, the TLT will need two closes under 130.47.
Odds favor a move to the upside.
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
The objective should be to 121.88.
118.75 and 115.63. 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
The XLE blew through the 63.28 level yesterday, closing at 63.96. And it closed above the 200 ema on the daily chart, which is a bullish sign.
A close today above 63.28 and the objective should be to 65.63.
Lower levels should act as support.
Apple:
Major levels for Apple are 112.50, 106.25, 100, 93.75, and 87.50.
Objective should be to 112.50. Support should be at lower levels.?
The main area of resistance is the mid band on the daily chart, which is 113.43.? It will need to clear that level to head higher.
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.
