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Yesterday I suggested closing the FCX position. The result was a 13% gain for nine days.
The market pulled back as we expected yesterday. For the day, the S & P 500 closed 62.70 points lower.
It closed the day at 2,783.36.
The low for the day ended up at 2,761.54. This was about 12 points below the level I suggested should be support.
That level was the minor 2,773.45 level. And the market broke about 10 points under it and managed to close about 10 points above it.
This level should still offer support.
The 60 minute chart did cross into an uptrend on the 60 minute chart. The S & P 500 has now come in alignment with the NASD Composite and the QQQ in terms of moving into an uptrend.
This now suggests we should see higher prices to follow.
The support area from yesterdays daily price bar is in the 2,782 area. Just above that is the 2,790 area.
Pre open, the S & P is trading about 14 points higher.
This would project to an open around 2,797. Look for support at the levels I mentioned above on a pullback.
I do want to mention that the bullish percent index and the number of stocks above their 200 day average are opposed to each other. This is something I showed on yesterday's webinar.
The bullish percent index has peaked at 91.60% a few days ago and now reads 77%.
The percent of stocks above their 200 day average closed yesterday at 19.32%.
This is the first time I can recall that these indicators have diverged like this.
The bullish index is overbought and the percent of stocks below their 200 day average are oversold.
Quite frankly, I am not sure how to interpret this.
Having said that, the fact that the S & P crossed into an uptrend on its 60 minute chart is the most important technical factor at the moment.
Here are the Key Levels for the Markets:
$VIX:
Minor level: 44.53
Major level: 43.75
Minor level: 42.97
Minor level: 41.40
Major level: 40.62 <
Minor level: 39.84
Minor level: 38.28
Major level: 37.50
Minor level: 36.72
Minor level: 35.16
Major level: 34.38
Minor level: 33.60
Minor level: 32.03
The VIX closed at 40.84. The VIX closed 3.08 points higher.
The VIX did cross into a downtrend on its 60 minute chart. The midband is 50 and should be resistance.
Watch for resistance at the minor 41.40 level. Also, the 43 area should be technical resistance.
S & P 500:
Minor level: 3,007.85
Major level: 2,968.80
Minor level: 2,929.75
Minor level: 2,851.65 **
Major level: 2,812.50
Minor level: 2,773.45 **
Minor level: 2,695.35
Major level: 2,656.30
Minor level: 2,617.25
Minor level: 2,539.06
Major level: 2,500.00
Minor level: 2,460.95
Minor level: 2,382.85
Major level: 2,304.75
Minor level: 2,226.65
The S & P closed at 2,783.36. The minor 2,773.45 level should offer support.
And a move above 2,812.50 would suggest the market will head higher.
The midband on the 60 minute chart, which is 2,706 should now be support.
Look for support around 2,780 as well.
QQQ:
Major level: 212.50 Hit
Minor level: 210.93 ***
Minor level: 207.81
Major level: 206.25
Minor level: 204.69
Minor level: 201.56
Major level: 200.00
Minor level: 198.44
Minor level: 195.31
Major level: 193.75
Minor level: 192.19
Minor level: 189.06
Major level: 187.50
The QQQ closed at 209.43. The midband on the daily chart is 195.87, and should now be support.
Look for the QQQ to reclaim the minor 210.93 level today. If it cannot close above this level, then I would expect a drop to 206.25.
Technical support is also around 195. And support from yesterday's daily bar should be in the 209.50 area.
IWM:
Major level: 175.00
Minor level: 173.44
Minor level: 170.31
Major level: 168.75
Minor level: 167.19
Minor level: 164.06
Major level: 162.50
Minor level: 160.94
Minor level: 157.81
Major level: 156.25
Minor level: 154.69
Minor level: 151.56 **
Major level: 150.00 <
Minor level: 148.44 **
Minor level: 145.31
Major level: 143.75
The IWM closed at 117.80. The IWM closed above the lower band on the daily chart for the fifth day, which is now 112.94.
The lower band should now act as support.
122.60 is a resistance level and if the IWM can clear it, then it should head higher.
TLT:
Minor level: 164.85 **
Minor level: 163.28
Major level: 162.50
Minor level: 161.72
Minor level: 160.16
Major level: 159.38
Minor level: 158.60
Minor level: 157.03
Major level: 156.25
Minor level: 155.48
Minor level: 153.91
Major level: 153.13
Minor level: 152.35
The TLT closed at 168.18. This put the TLT back above the upper band on the daily chart, which is 168.22.
Watch to see if it holds the upper band today.
Support should be around 161.
GLD:
Major level: 162.50
Minor level: 161.72 **
Minor level: 160.16
Major level: 159.38 <
Minor level: 158.60
Minor level: 157.03
Major level: 156.25
Minor level: 155.47
Minor level: 153.91
Major level: 153.13
Minor level: 152.35
Minor level: 150.78
Major level: 150.00
The GLD closed at 161.85. The GLD is overbought and right at the upper band on the daily chart, which is 164.77.
It will need two closes under 161.72 to drop to 159.38.
The 165 area should now be resistance. And 159 should be support.
XLE:
Major level: 56.25
Minor level: 55.47
Minor level: 53.90
Major level: 53.12
Minor level: 52.34
Minor level: 50.78
Major level: 50.00
Minor level: 49.22
Minor level: 47.65
Major level: 46.88
Minor level: 46.09 **
Minor level: 44.53
Major level: 43.75
The XLE closed at 32.06. The XLE is retesting the lower band on the daily chart.
Yesterdays low went to 31.06 or 1 point above the lower band, which is 30.69.
Watch to see if the lower band holds as support. If it does, expect a move higher.
AAPL:
Major level: 312.50
Minor level: 309.38
Minor level: 303.13
Major level: 300.00
Minor level: 296.88
Minor level: 290.63
Major level: 287.50 <
Minor level: 284.38 **
Minor level: 278.13
Major level: 275.00
Minor level: 271.88
Minor level: 265.63
Major level: 262.50
Apple closed at 284.43. Apple is still in an uptrend on its daily chart.
"The minor 284.38 should offer support." From yesterday and Apple managed to hold this level.
Look for a move back up to the major 287 level. Technical support is around 280.
Apple has crossed into an uptrend on the 60 minute chart.
WATCH LIST:
Bullish Stocks: AMZN, REGN, VRTX, AMGN, DG, LLY, FCN, WMT, AKAM, DOCU, CCOI, CNC, FIZZ, STX, CAG
Bearish Stocks: QID, SQQQ, SPXS, TECSWHR, WCN, DGX, DLTR, CRI, WPC, OMC