Friday, the S & P 500 closed virtually where it closed on Thursday.? It closed within 10 cents of Thursday's close.
For the week, the S & P closed to the upside 10.85 points, at 2,091.58.
The DOW also closed to the upside, however the NASD composite had a bearish close.
At this point, we are on alert for a pullback.? The VIX should help to confirm when it should begin.
Last week, the low for the VIX was exactly 12.50. However, it did close to the downside at 13.22.
I mentioned that a bottom for the VIX will most likely be confirmed when it closes two days above 14.06.
Thursday it hit a high of 14.14 and Friday's high was 14.19.? Both times the VIX sold off and got back below the 14.06 level.
I mentioned that trading the bounce in the VIX makes sense as it tries to firm up.? You can watch the levels to do this.
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This Wednesday is the FOMC statement at 2:00 EST.? The Fed will make their announcement regarding interest rates.? This can be an event that shocks the markets.
Having said that, companies reporting earnings can also have radical moves.
This week we will hear from CMG, AAPL, FB, FSLR, and AMZN, just to name a few that can have explosive moves.
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 *
At this point, for the VIX to head higher it will need two closes above 14.06.? If it does that, then the objective should be to 18.75.
12.50 should still be major support.
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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
2,109.38 should be resistance and 2,078.12 should act as support.
2,062.50 should be major support for the S & P 500.? A bounce at that level would be expected.
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 did have a sharp drop on Friday and closed at 108.56.
109.38 and 110.16 should be resistance.
Support should be at 107.81.
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
Minor level - 127.35
The TLT is back to testing the 128.13 level.? To move lower, the TLT will need two closes under 127.35.? If that happens, the objective would be to 125.
If it can reclaim the 128.91 level, look for a move back up to 131.25.
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 under 117.96 and the objective should be to 115.63.
118.75 should be resistance.? Support should be at 112.50.
XLE:
Major level - 68.75
Minor level - 67.96
Minor level - 66.41
Major level - 65.63
Minor level - 64.85
Minor level - 63.28 *
Major level - 62.50
Minor level - 61.72 *
A close today above 66.41 and the objective should be to 68.75.
68.75 should be a tough level to get through on the first attempt.
Major support is at 62.50.
Apple:
Major levels for Apple are 112.50, 106.25, 100, 93.75, and 87.50.
Apple closed just under 106.25 on Friday, at 105.68.? It should now be resistance.
A retest of 100 is most likely.
Watch list:
Bullish Stocks: LMT, BDX, RTN, LGND, JNJ, EW, CVX, ABMN, BABA,
CRL, MDT, ALB, CNI
Bearish Stocks: CMG, BWLD, PRGO, MNST, VRSK, SWKS, LB, FL,
AKAM, CAKE, DKS, QRVO
Be sure to check earnings release dates.
