Profit taking set in yesterday, with the S & P 500 closing 7.85 points to the downside.? It closed at 2,165.17.
Just like Tuesday, the down to up volume picked up and registered 1.47.
Because the VIX broke under 12.50, a retest of that level from below was expected.? And that is what happened.
The key is if the VIX can get above 13.28 and close above it for two days.
If the VIX finds resistance at 13.28 or 14.06 and reverses to the downside, I would expect the S & P 500 to continue up to it's objective.
There is a short term support level for the S & P at 2,164.12 and the market closed just above it.? Watch to see if this level can hold as support.
There were a few large moves off earnings yesterday.? EBAY was up almost 11% and URI jumped 9.1%.
LUV was down 11.2%.
P reported last night and is trading to the downside pre market.? I am not sure if the trading is a result of their earnings or the fact that they rejected an offer at $15 per share.
Regardless, the short $15 call that expires today will no doubt expire worthless.
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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 VIX will need two closes under 11.72 to move to 9.38.
Short term resistance should be at 13.28 and 14.06.
If the VIX breaks under 12.50, look for the markets to head back up.
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
Key levels for today should be 2,171.88, 2,168 and 2,164.10.
Objective still remains at 2,187.50.
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 closed 10 cents under 113.28 yesterday, so it still needs two closes above 113.28 to move up to 115.63.
Minor support is at 112.89.? 113.67 should offer minor resistance.
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 recaptured the 137.50 level yesterday, closing at 138.56.
Minor support should be at 138.28 and 137.89.
To move up to 140.63, the TLT will need two closes above 138.28.
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 held as support. The GLD should test 128.13.
This should be the second run at 131.25.
Bullish % interest for the gold miner sector remains at 96.43% and is overbought.
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 would need two closes under 67.96 to move down to 65.63.? It closed yesterday just above 67.96, at 68.11.
67.96 should still act as support.
To move higher, it needs two closes above 69.53.
Apple:
Major levels for Apple are 106.25, 100, 93.75, and 87.50.
Apple hit a high of 101 before closing on the day at 99.43.
Short term bias has shifted to the upside.? 98.44 should be a support area for Apple.? If it drops to that level, watch to see if it holds as 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
?Be sure to check earnings release dates.
