For the market to drop to 2,000, it will have to close under 2,046.88 today.? Another way to look at this is if the S & P rallies to close above 2,046.88, then it should bounce.
The VIX gapped up, hitting a high of 15.72 before closing at 15.42.? This is significant because it had it's first close above 14.06.? A close today above 14.06 and the VIX should try and test the 18.75 level.
I will not rehash the set ups I mentioned yesterday regarding an intermediate top, as you already know the conditions necessary.
As the market pulled back, the TLT finally closed above the 131.25 level.? It closed at 132.19.?
This is even more significant because it was the first close above 132.03. If it does close above 132.03 today, then the TLT should try and test 134.37.
Today is the release of the FOMC meeting minutes at 2:00, which can create excess volatility.
I hope to see you on today's webinar.?
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 - 14.06 *
Major level - 12.50
15.63 should offer some resistance.? Watch how the VIX reacts at that level.
If it cannot get through it, the market should bounce.
Having said that, 14.06 should now be support.
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
Short term support is at 2,031.30 and 2,015.60.? The 2,015.60 level should be strong support.
The key level for today should be 2,046.88.? Where the market closes in relationship to this price should indicate the next move for the market.
2,062.50 should now be resistance.?
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 at 108.88 yesterday.? So, the QQQ will still need two closes under 108.60 to move down to 106.25.
Minor support should be at 107.81 and 107.03.
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
A close today above 132.03 and the TLT should move up to 134.38.
132.81 should be resistance. 131.25 should now be 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
The objective should be to the 118.75 level, however it should act as resistance.
117.97 should offer resistance and the GLD closed at 117.66 yesterday.
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 closed at 60.20 yesterday and hit a low of 59.94.? This is within reach of the 59.38 support level.
If the XLE can stay above 60.16 today, I would expect it to start moving back up.
Apple:
Major levels for Apple are 112.50, 106.25, 100, 93.75, and 87.50.
Apple closed at 109.81.?? If it closes under 110.93 today, I would expect a retest of 106.25.
Minor support should be at 107.81.
Watch list:
Bullish Stocks: LMT, BCR, NOC, ULTA, MMM, AVGO, BDX, STZ, KMB, HD, THS, EW, PLCE, ATO, RS, GIS
Bearish Stocks: CMG, AGN, BWLD, DE, GD, FOSL, SKX, VRX, CRR, SHLD, CONN
Be sure to check earnings release dates.
