The markets pulled back yesterday and appears set to open lower this morning as well.
This should not be a surprise after the rally that happened last week.? A pause would be expected.
The question is where should support come in?
As I mentioned yesterday, support from the weekly price bar should be around 2,067.? If that cannot hold, I would look around the 2,050 level.
It appears that the S & P 500 should open around 2,070, so it is within 3 points of the first support level.
Watch how the S & P 500 reacts around 2,067.? If it violates that level, look for a move lower.
You also want to see the VIX stall out and start to head down.
With the release of the Fed meeting notes today, the market could move off their statement.
Earnings are quiet this week, with the next quarter beginning Monday, with the release of Alcoa earnings.
Here are the key levels for the markets.
VIX:
Minor level - 22.66
Major level - 21.88
Minor level - 21.09
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
The VIX managed to get above 15.63 yesterday, however, it closed just under it at 15.58.
17.19 should offer short term resistance, and watch for support around 14.06.
Resistance should also be at 16.41.
S & P 500 Cash Index:?
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
Minor level - 1,984.38
Minor level - 1,953.12
Major level - 1,937.50
Watch the 2,078.12 level today.? If that cannot hold, I would expect a move to 2,062.50.
And I would expect strong support at 2,062.50.
I don't see the S & P 500 dropping further than 2,046.88 at this point.
Nasd 100 (QQQ):?
?
Major level - 109.38
Minor level - 108.60
Minor level - 107.03 *
Major level - 106.25 *
Minor level - 105.46
Minor level - 103.91
Major level - 103.13
Minor level - 102.34
The QQQ closed at 107.42 yesterday, just above the 107.03 level.
106.25 should be strong support.
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
Minor level - 136.72
Minor level - 135.16 *
Major level - 134.38
The TLT continues to move up above the upper band and closed at 142.33.
143.75 should be strong resistance and a level I would not expect the TLT to violate.
Starting to look like a decent short candidate.
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 128.91, and the GLD should move up to 131.25.
131.25 is a level I would not expect the GLD to violate.? At least not on the first attempt.? If it does, look for higher highs.
Also, the GLD is very close to the upper band on the daily chart.? The upper band is 130.40 and the GLD closed at 129.47 yesterday.
Bullish % interest for the gold miner sector still reads 100%.
Not the time to be thinking long.
XLE:
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 closed at 67.22 yesterday.? A close today under 67.96 and it should test 65.63.
Minor support remains at 66.41 and 67.19.
Apple:
Major levels for Apple are 106.25, 100, 93.75, and 87.50.
Watch if Apple can get back above 95.31.? If it can't, I would expect it to head lower.
Minor support is at 94.53 and 93.75.
Watch list:
Bullish Stocks: NTES, CASY, MMM, SYK, JNJ, CVX, CCI, DTE, POOL, XOM, ALGN, PNW, ETR, DGX
?
Bearish Stocks:? CMG, UHS, WBC, MA, RHT, WAB, RCL, NTRS, VLO, CCL, CAKE, CBG
?
Be sure to check earnings release dates.
