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As expected, the S & P 500 continued higher on Friday. We anticipated a rally based on the fact that both the 30 minute and 60 minute charts were trending to the upside.
For the day, the market closed at 2,840.35. It closed up 13.13 points. And it closed at 100% of the daily price bar.
This puts the odds of Fridays high being violated before the low at extremely highly likely event.
And support from Friday's daily bar should be in the 2,833 to 2,845 area.
The close came within 1.50 points of the major 2,841.80 level.
For the week, the S & P 500 closed at the high as well. The high for the week was 2,840.48 and closed three cents lower than the high.
The range was the week was only 44.04 points. As compared to the weekly average true range of 59.21 points, we see that price contracted. That maybe the only bearish scenario from last week.
And the VIX is now back under the major 12.50 level.
This once again alerts us to the fact that the VIX is oversold and could bounce.
Of course, a bounce in the VIX would indicate the market will pullback.
Support from last week's weekly price bar is in the 2,818 to 2,830 area.
Earnings continue this week and should be highly scrutinized.
Continue to monitor the longer term levels for the market.
Here are the Key Levels for the Markets:
$VIX:
Major level: 31.25
Minor level: 29.69
Minor level: 26.56
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 <
Minor level: 10.94
The VIX closed at 11.64. The VIX is back under 12.50. The high for the day was 12.46, four cents under the major level.
At this point, a close under 12.11 today and the VIX should drop to 10.94.
Resistance is at 12.50.
SPX:
Major level: 2,890.60
Minor level: 2,878.40
Minor level: 2,854.00
Major level: 2,841.80 <
Minor level: 2,829.60 **
Minor level: 2,805.20
Major level: 2,793.00
Minor level: 2,780.78
Minor level: 2,756.33
Major level: 2,744.10
2,822.30 should be support for the market. If the S & P 500 can clear the minor 2,846.70 level, I would expect it to head higher.
With the S & P 500 closing above the minor 2,822.30 level, it should act as support.
2,830.80 is also a minor support level.
QQQ:
Major level: 187.50
Minor level: 185.94
Minor level: 182.81
Major level: 181.25
Minor level: 179.69 **
Minor level: 176.56
Major level: 175.00 <
Minor level: 173.44
Minor level: 170.31
Major level: 168.75
The QQQ closed at 180.08. The QQQ is now within 1.30 points of the 181.25 objective.
178.91 and 179.69 should be support levels.
IWM:
Major level: 171.88
Minor level: 171.10
Minor level: 169.53
Major level: 168.75
Minor level: 167.97
Minor level: 166.41
Major level: 165.63 <
Minor level: 164.85
Minor level: 163.28
Major level: 162.50
The IWM closed at 166.39. It closed two cents under the minor 166.41 level,
165.63 should be support.
166.02 is also minor support.
TLT:
Major level: 123.44
Minor level: 121.49
Minor level: 120.70
Major level: 120.31
Minor level: 119.92
Minor level: 119.14 **
Major level: 118.75
Minor level: 118.36
Minor level: 117.58
Major level: 117.19
The TLT closed at 119.22. The TLT did clear the 118.75 level. So, if the TLT closes above 119.14 today, it should move up to 120.31
118.75 should now be support. And minor support is at 118.95.
GLD:
Major level: 118.75
Minor level: 118.36
Minor level: 117.58
Major level: 117.19
Minor level: 116.80
Minor level: 116.02
Major level: 115.63 **
Minor level: 114.85
Minor level: 113.28
Major level: 112.50
The GLD closed at 114.92. The GLD would now need two closes under 114.85 to test 112.50.
The GLD is oversold and a bounce should be coming.
115.63 should be resistance.
XLE:
Major level: 78.13 <
Minor level: 77.35
Minor level: 75.78 **
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
The XLE closed at 75.24. The low for the day did dip under the 75 level.
75 has been strong support for the XLE. The XLE should bounce and I don't see it dropping under 74.22.
FXY:
Major level: 86.72
Minor level: 86.53
Minor level: 86.14
Major level: 85.94
Minor level: 85.75
Minor level: 85.36 **
Major level: 85.16
Minor level: 84.97
Minor level: 84.58
Major level: 84.38
The FXY closed at 86.04. The FXY should test 85.94.
85.84 should be support. The 30 minute chart is now bullish, which implies short term momentum has shifted to the upside.
AAPL:
Major level: 200.00
Minor level: 198.44
Minor level: 195.31
Major level: 193.75 <
Minor level: 192.19 **
Minor level: 189.06
Major level: 187.50
Minor level: 186.72
Minor level: 185.16
Major level: 184.38
Apple continued higher and closed at 207.99.
Apple is now above its upper band on the daily chart. The upper band is 204.55.
$203 should be support, as well as $206.25. I expect a move up to 212.
WATCH LIST:
Bullish Stocks: SPY, COST, AAPL, ASML, UNP, PAYC, AAP, DXCM, KLAC, JPM, SODA, WST, MSFT
Bearish Stocks: BIDU, STZ, WAT, BABA, URI, CBOE, ALB, ALNY, SINA, TSN, AIG
Be sure to check earnings release dates.