Yesterday, the S & P 500 closed slightly to the upside by .70 points. It closed at 2,169.18.
It could not reclaim the 2,171.88 level, which gives the market a slightly bearish bias heading into today's Fed announcement.
The other bearish set up is that the VIX also closed to the upside.? The VIX closed at 13.07, up .13.
This creates a divergence with both the market and the VIX closing up on the day.
Yesterday's price action also was a doji, where the close was approximately the open.
The market is reflecting indecision ahead of the announcement.
I mentioned the 13.28 level in the VIX yesterday and twice the VIX sold off against that level.
Watch that level again today.
Apple reported last night and is trading to the upside over 7%.
I hope to see you on the webinar later 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
The VIX could not close above 13.28, so it gives mixed signals with the S & P 500 confirming to the downside.
The VIX will need two closes under 11.72 to move to 9.38.? It needs two closes above 13.28 to move up to 15.63.
14.06 and 13.67 should act as resistance.
12.11 and 11.72 should also offer support.
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
2,175.80 should act as a short term resistance level. Watch how the market trades at the 2,171.88 level.
2,162.10 and 2,164.10 should act as support.
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 yesterday at 113.79.? The upside objective should still be to 115.63.
113.48 should offer support.
114.45 should be 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 objective should be up to 140.63.
Minor support should be at 139.06. Resistance is at 139.84.
Expect volatility today.
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 above 125.78 and the GLD should move up to 128.13.
126.56 is minor resistance.
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 stopped a point above the 65.63 level.
A close today above 67.96 and the XLE should move up to 68.75.
66.80 should be short term support.
Apple:
Major levels for Apple are 106.25, 100, 93.75, and 87.50.
Apple is up over $7.65 pre market off their earnings.
Look for 103.13 to act as support.
Watch list:
Bullish Stocks: AMZN, ULTA, DPZ, IBM, UNH, LH, UHS, CASY, VMC, JNJ FB, ITW, CRI
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Bearish Stocks:? NFLX, PSX, CMP, AMCX, MANH
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Be sure to check earnings release dates.
