After fourteen days in a tight consolidation range, the market broke yesterday,
With the VIX down at a major support level, we were on the alert that a pullback was forthcoming.
The market fell short of the upside objective of 2,187.50 by 9.21 points, when the S & P 500 hit a pivot high of 2,178.29.
And the VIX had it's first close above 13.28 yesterday when it closed at 13.37.
If the VIX can close above 13.28 today, the VIX should move up to 15.63 level.
Yesterday also had the down to up volume pick up.? The reading yesterday was 2.87 compared to 2.17 for Monday.
The question now is at what level should support come into the market?
2,125 is the next level to the downside and should offer strong support.? The market could drop all the way down to 2,062 and the uptrend would still be intact.
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
The key for today is if the VIX can close above 13.28 again. If it does, it should continue up and the market will continue down.
Support should now be at 12.50.
S & P 500 Cash Index:?
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
Minor level - 2,046.88
Minor level - 2,015.62
Major level - 2,000.00
A close today under 2,171.88 and the S & P 500 should drop to 2,125.
Minor support is at 2,156.30.? If the market gets under this level, look for it to act as resistance.
2,152.30 should also provide some minor support.
Nasd 100 (QQQ):?
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
Minor level - 111.72
Minor level - 110.16
Major level - 109.38
115.63 should offer resistance.
112.50 should still be major support.
To move down to 112.50, the QQQ will need two closes under 114.85.
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
The TLT stopped right on the downside objective, which was 137.50.
To move lower, the TLT will need two closes under 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 GLD is very close to the 131.25 major level.
If the GLD gets through this level, I do expect more movement to the upside.? A failure here and it could be a deep correction.
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 broke under 65.63, and managed to close above above it at 65.75.? The low for the day was 64.57, just about 30 cents under the 64.85 support level.
Two closes under 64.85 and the XLE should test 62.50, which should be strong support.
Two closes above 66.41 and the XLE should move up to 68.75.
Apple:
Major levels for Apple are 106.25, 100, 93.75, and 87.50.
Apple is bouncing right at the mid band.? It closed yesterday at 104.48, just 8 cents under the mid band.
If it closes today under 104.56, I would expect further movement to the downside.
Watch list:
Bullish Stocks: ORLY, NTES, AMGN, AVGO, UNH, ZBH, CMI, UTX, CME, ALGN, CTXS, CAT, BURL, BDC, DECK, QCOM
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Bearish Stocks:? WBA, WAB, LPNT, APC, HIG, GIII, ALR, KR
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Be sure to check earnings release dates.
