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Today closes the shortened trading week. Wednesday, the S & P 500 continued its July 4th rally.
For the day, the S & P 500 closed 22.55 points higher. It closed at 2,995.56.
This was the second close above the major 2,968.80 level.
And it is now only 13 points from the next minor level, which is 3,007.85.
After taking out 2,968.80, the next minor level may offer some resistance. And with the VIX dropping back down to its long term support level, this may be setting up.
But, the short term 30 minute and 60 minute charts for the S & P 500 remain firmly bullish.
This does suggest that momentum is still bullish.
The S & P 500 is moving closer to the upper bands on the short term charts, which should be resistance.
The upper band on the 30 minute chart is 3,007.50. And if this point, the market is about 14 points below it.
What is interesting about the upper band is that it virtually coincides with the next minor level to the upside which is 3,007.85.
So, with both these levels within 35 cents of each other, it does give more credence to a pullback at that level.
The midband on the 30 minute chart is 2,917.19 and on the 60 minute chart, it is 2,873.72.
So, the market could pull back up to 120 points without affecting the uptrend.
This morning, we will get the Non Farm Payroll at 8:30 EST.
Pre open, the market is trading about 6 points lower. But, this is before the release of the non farm payroll which can produce a big move.
The support area from Wednesday's daily bar is in the 2,987 area.
Here are the Key Levels for the Markets:
$VIX:
Major level: 21.88
Minor level: 21.10
Minor level: 19.53
Major level: 18.75
Minor level: 17.97
Minor level: 16.41
Major level: 15.63
Minor level: 14.85 **
Minor level: 13.28
Major level: 12.50 <
Minor level: 11.72
The VIX closed at 12.65 on Wednesday. This now puts the VIX within 15 cents of the 12.50 level we have been looking for.
14.06 should be resistance. And 13.28 should also offer resistance.
Watch to see how the VIX reacts around 12.50.
SPX:
Minor level: 3,164.08
Major level: 3,125.00
Minor level: 3,085.95
Minor level: 3,007.85
Major level: 2,968.80 << HIT
Minor level: 2,929.73 **
Minor level: 2,851.58
Major level: 2,812.50
Minor level: 2,773.45
Minor level: 2,695.35
Major level: 2,656.30 ***
Second close above the 2,968.80 level. At this point, look for support at 2,949.20.
And if the S & P 500 can clear 2,998, it should head higher. This is a short term resistance level.
Trend remains firmly bullish.
QQQ:
Major level: 193.75
Minor level: 192.19
Minor level: 189.06 **
Major level: 187.50 < Hit
Minor level: 185.94 **
Minor level: 182.81
Major level: 181.25 <
Minor level: 179.69
Minor level: 176.56
Major level: 175.00
The QQQ closed at 191.44. The QQQ is inching up to the 193.75 level.
189.06 should offer minor support. And minor resistance is at 192.19.
Technical support is at 188. Short term charts remain firmly bullish.
IWM:
Major level: 162.50
Minor level: 160.94
Minor level: 157.81
Major level: 156.25 <
Minor level: 154.69
Minor level: 151.56 **
Major level: 150.00 <
Minor level: 148.44
Minor level: 145.31
Major level: 143.75
The IWM closed at 156.26. The IWM closed 1.11 points higher. And it managed to close above the midband again. The midband is now 154.49.
To move lower now, the IWM will need two closes under 154.69, which also just happens to be the midband.
154.69 should offer minor support.
Short term trends remain bullish. So, buying against support is the best strategy.
If the IWM can close again above 156.25, it should head higher.
TLT:
Major level: 134.38
Minor level: 133.60
Minor level: 132.03 **
Major level: 131.25
Minor level: 130.47
Minor level: 128.91
Major level: 128.13
Minor level: 127.74
Minor level: 126.95
Major level: 126.56
Minor level: 126.17
Minor level: 125.39
Major level: 125.00
The TLT closed out at 134.21. The TLT broke out and closed above the upper band. That level is now 133.98.
If the TLT can stay above the upper band, it should head higher. But, by virtue of the fact that it closed above the upper band, it should retest it if it does pullback.
As I said the other day, patience is the key here. I am one to be inclined to buy above the upper band.
The question now is if it can clear this level or fail. Patience is the key. Wait to see which event happens.
133.20 should now be support. And 135.16 should be minor resistance.
GLD:
Major level: 134.48
Minor level: 133.60 **
Minor level: 132.03
Major level: 131.25
Minor level: 130.47
Minor level: 128.91
Major level: 128.13
Minor level: 127.74
Minor level: 126.95
Major level: 126.56
Minor level: 126.17
Minor level: 125.39
Major level: 125.00
Minor level: 124.22
Minor level: 122.66
The GLD closed at 133.63. It moved back above the upper band, which is 132.20.
134.38 is a resistance level and the GLD cannot clear this level, I would expect a pullback.
131.25 should be support.
XLE:
Major level: 65.63
Minor level: 64.85
Minor level: 63.28 **
Major level: 62.50 <
Minor level: 61.72
Minor level: 60.16
Major level: 59.38
Minor level: 58.60
Minor level: 57.03
Major level: 56.25
The XLE closed at 63. It will need two closes above 63.28 to move higher.
62.50 should be support. And minor support is at 62.89.
64.06 is a minor resistance level. Technical support is at 63.
The daily chart is starting to show bullishness.
AAPL:
Minor level: 203.13
Major level: 200.00
Minor level: 196.88
Minor level: 190.63 **
Major level: 187.50 <
Minor level: 184.38
Minor level: 178.13 **
Major level: 175.00
Minor level: 171.88
Minor level: 165.63
Major level: 162.50
Apple closed at 204.41. 200 should now offer support.
The next level on the upside is 203.13. If the Apple can move above this level, it should head higher.
Continue to buy at support. 206.25 is minor resistance.
WATCH LIST:
Bullish Stocks: AVGO, FLT, ZBRA, MCD, FB, OLED, DECK, CBRL, CASY, BABA, KLAC, XLNX, KEYS, OMC, KMX
Bearish Stocks: DPZ, ALGN, KEX, GDDY, KFY, CAG, CARS, SBH, CXW, TUP, GEO
Be sure to check earnings release dates.
