The S & P 500 continues to defy gravity and has now closed for three consecutive weeks to the upside.
Last week, the S & P closed 31.84 points to the upside. In fact, all markets closed over 1% to the upside, with the DOW leading the way, with a gain of 2.04%.
With the S & P closing at 2,161.74 on Friday, it is now within 26 points of the 2,187.50 objective.
With an Average True Range of 22 points, this objective could be hit today, or certainly by tomorrow.
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The VIX is now down to it's major support level, which is 12.50.? Friday it closed at 12.67, after hitting a low of 12.27.
This is the level to watch because if the VIX does firm up here and begins to head up, I would expect profit taking to ensue in the markets.
Another market that is coming off a severe overbought condition is the TLT.
Since I have been discussing this set up, the TLT has dropped 5.44. The pivot high was 143.62 and I mentioned that 143.75
should be a difficult level to get through.
The number of companies reporting earnings begins to pick up this week.
We will hear from IBM and NFLX today after the close.
Tomorrow, Goldman reports, along with Yahoo.
Then later in the week, we hear from INTC, LVS, LUV, CMG, SWKS and PYPL.
Here are the key levels for the markets.
VIX:
Minor level - 19.53
Major level - 18.75
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
Major support at 12.50.? To mover higher, the VIX will need two closes above 13.28.
14.06 should be resistance.
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
Objective should be to 2,187.50.? 2,156.30 should be a support level.
2,218.80 is a minor resistance level.
2,171.90 should also be a minor resistance level.
Nasd 100 (QQQ):?
Major level - 115.63
Minor level - 113.28 *
Major level - 112.50 *
Minor level - 111.72 *
Minor level - 110.16
Major level - 109.38
Minor level - 108.60
Minor level - 107.03
Major level - 106.25
The QQQ came within 20 cents of the 112.50 level yesterday, closing at 111.80.
Support should be at 110.94.
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 *
The TLT is close to the 137.50 support level. It closed Friday at 138.39, within 90 cents of the objective.
135.94 is the key support on the downside.? If the TLT closes under that level, it could drop to 131.25.? Having said that, 137.50 should be strong 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
Like the TLT, the GLD has moved down off it's overbought condition.
The key level was 131.25 and the GLD hit 131.15 before profit taking set in.
125 should be strong support.
Bullish % interest for the gold miner sector remains at 96.43%.?
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 is still hovering just above the 68.75 level.
To move higher, it needs two closes above 69.53.
Minor support is at 69.14.
Apple:
Major levels for Apple are 106.25, 100, 93.75, and 87.50.
Apple hit a high of 99.30 on Friday and formed a narrow range doji bar.? This was within 70 cents of the objective.
Watch where Apple closes today.? A lower close and it should drop.
97.66 should be minor support.
Watch list:
Bullish Stocks: LMT, ULTA, BCR, NOC, STZ, COST, LLL, RTN, CLX, CASY, VMC, DLR, PEP, CME, DG, ALGN
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Bearish Stocks:? HUM, FLT, BWLD, JAZZ, WBC, PSX, TSO, MAN, XLO, HIG, COP, AMTD, BKU
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Be sure to check earnings release dates.
