The market bounced up yesterday, closing 6.76 points to the upside.? It also formed an inside day, which has a lower high and a higher low.
This would qualify as a range contraction as well, as the daily range was only 11.23 points, compared to an average true range of 16.82.
Normally, you would expect an expansion after a narrow range day, but I suspect that may wait until tomorrow when the Non Farm Payroll is released at 8:30 AM EST.
To confirm that the market should continue down, we were looking for the VIX to hold the 13.28 level.
It got as high as 14.24 yesterday, before dropping under 13.28, to close at 12.59.? The 13.28 level should most likely be tested today.
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
Because the VIX could not close above 13.28 yesterday, it will still need two closes above that level to move higher.
Watch how the VIX reacts around the 12.50 and 13.28 levels.
14.06 should be a minor resistance level.
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
I mentioned the minor support level at 2,152.30 yesterday and the low for the day was 2,152.56.?
Support should be at 2,152.30 and 2,156.30.
Minor resistance is at 2,171.90.
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
To move down to 112.50, the QQQ will need two closes under 114.85.
But 114.85 should offer support.
Resistance is at 116.41.?
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
A close today above 138.28 and the TLT should move up to 140.63.
138.28 is a minor support level.? And 137.50 should also offer 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
A close today under 130.46 and the GLD should drop to 128.13.
Look for 130.46 to act as resistance.
128.91 should offer minor support.
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 65.63 level held as support yesterday.? The low for the day was 65.50, before the XLE rallied to close at 67.02.
A close today above 66.41 and the XLE should move up to 68.75.
66.41 should offer support.
Apple:
Major levels for Apple are 106.25, 100, 93.75, and 87.50.
Apple reclaimed the mid band yesterday, closing at 105.22. The midband is 103.95.?
Minor support is at 104.69
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.
