The S & P 500 was relatively quiet yesterday until the release of the Fed announcement regarding interest rate increases.
Just before the announcement, the S & P was trading at a low of 2,084.74, which was just below the minor 2,085.90 support level.
After the announcement hit the wire, the S & P 500 jumped up to a high of 2,099.89, for a move of about 15 points.
At the same time, the VIX had actually traded above 14.06 and had hit a high of 14.95 early in the day. From there it traded down the rest of the day and closed back under 14.06, at 13.77.
Reactions off of earnings have been strong this week.? TWTR was down 16.2% and Apple sold off 6.26%, to name a few.
This morning, it appears that Facebook will open higher by close to 12% on an earnings beat.? And it looks like Harman International (HAR) will open to the downside over 12%.
Pre market, the S & P 500 if off about 14 points. Follow the VIX for confirmation of continuation.
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 *
The VIX did take out the short term 14.84 level yesterday, which should mean that support is at 13.28.? 14.06 should continue to be resistance, unless the VIX can get above it.? If it can, then it should act as support.
The VIX will still need two closes above 14.06 to move up to 18.75.
Minor support is at 13.28, and major support at 12.50.
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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
Support is still at the minor 2,078.12 level.
And 2,062.50 should be major support for the S & P 500.
2097.70 is a minor support level.? Expect it to act as resistance if the market is under that 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 closed under the 107.81 support level, at 107.58.? That level should still act as resistance.
A retest of 106.25 should be the next move.
TLT:?
Minor level - 132.03 *
Major level - 131.25 *
Minor level - 130.46
Minor level - 128.91
Major level - 128.13
Minor level - 127.35
Minor level - 125.78
Major level - 125.00
The TLT closed at 128.52 yesterday.? 128.13 should be support.
Two closes above 128.91 and the TLT should move up to 131.25.
129.69 is a minor support level.? If the TLT can hit that level, it should continue higher.
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
To move up, the GLD will need two closes above 119.53.? If it can do that, the objective should be to 121.88.
121.88 should be a critical level for the GLD.? If it sells off against that level, it should drop fast.
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 *
The XLE hit the 68.75 objective, hitting a high of 68.78 yesterday.?
Lower levels should act as support, namely 65.63 and 62.50.
Apple:
Major levels for Apple are 112.50, 106.25, 100, 93.75, and 87.50.
Apple ended up closing down $6.53 or 6.26% off their earnings.
Volume was a selling climax, which is a good sign.
$96.88 is the key short term level to watch.? Two closes under $96.88 and Apple could drop to $91 or $88.
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.
