Yesterday saw the volatile moves you would expect? on a day with a Fed announcement.? In the morning, the S & P 500 topped out at 2,174.98, just under the 2,175.80 level I have mentioned the past few days.
Then it dropped down to 2,161.47 just before the release of the Fed statement.
From there it bounced up to 2,171.98 before closing down 2.60 on the day, at 2,166.58.
For the day, the S & P had a 16 point range, but intra day swings were over 23 points.
Of course, the timing of the swings could be helped by following the VIX.
The VIX moved up all day until it topped out at about 1:30 EST, at 13.74.? The move up in the VIX confirmed
the downswing in the S & P.
Once the VIX reversed and headed down, the market should move up and that is what happened.
The downswing in the VIX ultimately stopped exactly at 12.50, which you no doubt recognize as a key level.
So, on the day, the S & P and the VIX both closed to the downside, creating a second day of divergence.
Facebook reported and is trading almost $5 to the upside. This follows the upside move for Apple off their earnings.
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
13.28 is still the level to watch.? Two closes above that level and the VIX should move up.
But, the VIX has struggled to get above it.
And 12.50 should act as support.
The VIX topped at 13.74 yesterday, just 7 cents above the 13.67 level that I mentioned 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.
2,168 should be a level to watch today.
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 at 114.58 yesterday, within a point of the objective.
114.26 should offer support.
115.23 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 TLT pushed up and closed 2 cents above the objective of 140.63.
Minor resistance is at 141.41.? Support should be at 139.84.
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 GLD closed one cent under the 128.13 level.
128.91 is minor resistance.? 127.34 should be 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
65.63 should be the objective.? Minor support should be at 66.41.
66.02 should also be short term support level.
Apple:
Major levels for Apple are 106.25, 100, 93.75, and 87.50.
Apple ended up closing up $6.28, at $102.95 off their earnings.
A close today above $101.25 and it should move up to $106.25.
The midband on the daily chart is $104.80.? Watch to see if it offers resistance.
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.
