Yesterday had the volatility anticipated with a 24.24 point range in the S & P as compared to a 21.18 average true range.
The market bottomed around the 2,046.88 level and ran up to hit a pivot high of 2,061.50.? That was just one point under the major level of 2,062.50.? From there is pulled back about 7 points and rallied into the close after the release of the FOMC Meeting Notes.
The market did close above the 2,062.50 level, at 2,066.66.
Pre open, the markets are set to open to the downside.
This should not be a shock because the VIX, which managed to pull back off the 15.63 level, still closed above 14.06.? The close for the VIX yesterday was 14.09, or three cents above the key level of 14.06.
Here are the key levels for the markets.
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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 did act as resistance yesterday.? And once the VIX dropped under 15.63, it began the rally in the markets.
Minor resistance at 14.84.
Having said that, 14.06 should now be support. And if the VIX can get above 15.63, look for a move up to 18.75.
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
2,062.50 should most likely be retested.? An open below that level and it should act as resistance.
2,054.70 and 2,046.88 should act as support.? Under 2,046.88 there is support at 2,031.30.
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 110.67 yesterday, 51 cents above the 110.16 level.? At this point, 111.71 should be resistance.
Minor support should be at 109.38 and 108.60.
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
After closing above the 132.03 level for a day, the TLT dropped yesterday and closed under the 131.25 level, at 131.23.
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132.81 should still 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.
117.96 should offer minor resistance.
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 61.50 yesterday. It popped up as anticipated.? Objective should be to 62.50.
Major support at 59.38.
Apple:
Major levels for Apple are 112.50, 106.25, 100, 93.75, and 87.50.
Apple closed at 110.96.?
Minor support should be at 109.38 and 107.81.
Notice how Apple is trading lock step with the QQQ.
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.
