Since retesting the 12.50 level on the VIX, which I mentioned on Wednesday's live webinar should be the action to look for, the VIX dropped.
What I did not mention was that it would most likely retest the 11.72 level.
And yesterday, it dropped under 11.72, hitting a low of 11.38 before closing at 11.68, just 4 cents under the 11.72 level.
The implication is that when the VIX drops, the S & P 500 should move up.? And vice versa.
So, then the VIX reversed off of 12.50, the S & P 500 bottomed at 2,172 and proceeded to move up.
And where did it go?
It went right back to 2,187.50.? Actually, it hit a high of 2,188.45 before settling at 2,185.79.
VIX can be extremely helpful in determining market direction.
We have only one open position that expires today and that is the short $13 call on FCX.? FCX closed at $12.11 yesterday, so it appears highly likely that the calls will expire worthless today and you will book the profit on them.
Here are the key levels for the markets.
VIX:
Minor level - 17.96
Major level - 15.63
Minor level - 14.85
Minor level - 13.28 *
Major level - 12.50 *
Minor level - 11.72 *
Minor level - 10.15
Major level - 9.38
A close today under 11.72 and it should further validate a move down to 9.38.
Minor levels are 12.11 and 11.33.
S & P 500 Cash Index:?
Major level - 2,250.00
Minor level - 2,234.38
Minor level - 2,203.12 *
Major level - 2,187.50 **
Minor level - 2,171.88 *
Minor level - 2,140.62
Major level - 2,125.00
Minor level - 2,109.38
Minor level - 2,078.12
Major level - 2,062.50
The 2,187.50 level has been hit again. To move higher, the S & P 500 need to close above that level.
Minor levels to watch today are 2,175.90, 2,179.70 and 2,183.60.
The next upside confirming level is 2,203.12. I would expect resistance at that level.
Nasd 100 (QQQ):?
Major level - 121.88
Minor level - 120.31
Minor level - 117.19
Major level - 118.75 *
Minor level - 117.97
Minor level - 116.41
Major level - 115.63
Minor level - 114.85
Minor level - 113.28
Major level - 112.50
The QQQ closed at 117.12, just 7 cents under the next upside confirming line of 117.19.
Watch the 117.19 level.? If the QQQ can get above this level, I would expect it to act as support.
116.89 should be support.? 117.38 should offer resistance, if the QQQ can clear this level, expect the QQQ to move higher.
TLT:?
Major level - 143.75
Minor level - 142.96
Minor level - 141.41
Major level - 140.63
Minor level - 139.85
Minor level - 138.28 *
Major level - 137.50
Minor level - 136.72
Major level - 134.38
The TLT should retest the 137.50 level.
139.45 should be resistance and 137.89 should offer some support.
GLD:
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
Minor level - 124.22
To move lower, the GLD will need two closes under 127.35.? It closed just above that yesterday, at 127.67.
128.13 should offer resistance.? Support should be at 127.34.
XLE:
Major level - 71.88
Minor level - 71.10
Minor level - 69.53
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
The XLE reclaimed the 67.96 level yesterday, which tells us it should move higher.
It should now act as support.
Apple:
Major levels for Apple are 112.50, 106.25, 100, 93.75, and 87.50.
106.25 should be support.? Apple needs to clear the 109.38 level to move higher.? If it can't, look for it to drop to around 105.
Watch list:
Bullish Stocks: PCLN, AMZN, ULTA, AVGO, RTN, ZBH, FFIV, CMI, FB, SWK, MON, JACK, CME, GD, ALGN
Bearish Stocks:? GILD, CHKP, WDC, FSLR, HIG, CF, VGR, FLO
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Be sure to check earnings release dates.
