You should have rolled forward the $18 calls on ETE. At this point, it means that you have collected just over 16% of the purchase price by selling call options.
After a series of narrow range days, Friday experienced excess volatility with Janet Yellen speaking.
The S & P 500 opened at 2,175.10 and raced up to 2,187.94. From there is dropped to a low of 2,160.39 before settling on the day at 2,169.04.
The range for the day was 27.55 points.? This was the largest daily range since July 6th.
For the week, the S & P 500 only closed 14.83 points to the downside.? And the VIX closed at 13.65, up 20.37% for the week.
Based on the weekly price bar for last week, the key levels to watch are the 2,175 to 2,177 level.? These levels should offer resistance.? If the market can exceed these levels, expect them to offer support.
The question now is this ... does this mean the uptrend is over?
I don't think so.? But, with the VIX closing above 13.28 on Wednesday and Thursday, you should have been biased for a move up in the VIX to 15.63.
The VIX did not quite get to that level, at least not yet. But it did come close, hitting a high of 14.93 on Friday.
The point is that the conditions were set for a rise in the VIX, which means that the markets should drop.
The S & P 500 could drop down to 2,062.50 and the uptrend would still be intact.? The next level of support should be at 2,125.
Continue to monitor the shorter term levels for the VIX and the S & P 500.? Targeting the end of this sell off should prove profitable.
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
With the VIX closing two days above 13.28 last week, the objective should be to 15.63.
If the VIX does move up to 18.75, it would still mean the uptrend is in place.
To move to 18.75, the VIX would need two closes above 17.96.
Support should be at 12.50.? And 17.19 should offer resistance.
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
Friday ended with the first close under 2,171.88.
If the S & P 500 closes under 2,171.88 today, the objective should be to 2,125.
Support should be at 2,160 and 2,156.? Resistance is at 2,175.80 and 2,179.70.
Nasd 100 (QQQ):?
Major level - 121.88
Minor level - 120.31
Minor level - 119.53
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 objective for the QQQ should still be to 115.63.
115.63 should offer strong support.? However, if that level cannot offer support, I would expect 112.50 would.
116.02 should offer minor support.? Minor resistance is at 117.19.
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 dropped Friday and closed at 138.36. The low for the day was 138.22.? This is 72 cents above the objective of 137.50.
To drop to 134.38, the TLT will need two closes under 136.72.
Minor support is at 136.72.
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
The 125 level should still be the objective for the GLD.
127.35 should now be resistance.
Support should be at 124.22.
XLE:
Major level - 75.00
Minor level - 74.22
Minor level - 72.66
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
The objective should still be up to 71.88.
68.75 should offer strong support.
Apple:
Major levels for Apple are 112.50, 106.25, 100, 93.75, and 87.50.
Apple formed a bearish weekly price bar last week.
Resistance from the price bar should be around 108.50. Support should be around 105.50.
Watch list:
Bullish Stocks: NTES, AVGO, XEC, ADBE, KSU, NSC, URI, VMW, AMBA, ADSK, DFS, EGN, CLR, CCE, NCR
Bearish Stocks:? AGN, EXPE, LLY, IAC, TEVA, AN,
ALKS, FSLR, CAR, OMI, SCTY
?Be sure to check earnings release dates.
