The markets continued to pullback yesterday, with the S & P 500 closing 3.64 points to the downside.
The market bottomed at 2,107.73 before rallying higher to close at 2,115.48.
The 2,109.38 minor support level was recaptured and was tested.
This is the major level at the moment because if the S & P 500 does close under that level for two days, it would want to
test the 2,062.50 level.
The 2,062.50 level should be major support for the S & P.
The key now is if the VIX can get through 15.63.? If it does, you can expect the markets to continue down.? If the VIX fails at that level, the markets should reverse and head back up.
From a technical standpoint, all timeframes for the S & P 500 are uptrending, so the expectation is that the market should rally again after a pullback.
There is one open position that expires today and that is the short $16 call on ETE.? ETE had pulled back with the market,
so it looks highly doubtful that the calls will be assigned.
I will send a separate email if an adjustment needs to be made.
Pre open, the markets are trading to the downside.
Here are the key levels for the markets.
VIX:
Minor level - 19.53
Major level - 18.75
Minor level - 17.96
Minor level - 17.19
Minor level - 16.41
Major level - 15.63 *
Minor level - 14.84
Minor level - 14.06 *
Minor level - 13.28
Major level - 12.50 *
Minor level - 10.94
15.63 and 14.84 should be minor resistance levels.? Remember, if the VIX can get through a level, it should act as support.
16.41 should act as resistance.
S & P 500 Cash Index:?
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
The S & P 500 is trading down almost 14 points before the open.
Key short term support is at 2,101.60 and 2,109.60.
To move lower, the S & P will need two closes under 2,109.38.
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Nasd 100 (QQQ):?
Major level - 112.50
Minor level - 111.71
Minor level - 110.16 *
Major level - 109.38
Minor level - 108.60
Minor level - 107.03
Major level - 106.25
Minor level - 105.46
The objective for the QQQ should be 112.50.
Minor support is at 109.38.
To break lower, the QQQ will need two closes under 108.60.
TLT:?
Major level - 137.50
Minor level - 136.72
Minor level - 135.16
Major level - 134.38
Minor level - 133.60
Minor level - 132.03 *
Major level - 131.25
Minor level - 130.46
134.38 should be exceeded today.
Resistance should be at 135.94.?? To move higher, it will need to clear that level.
Minor support should be at 133.59.
GLD:
Major level - 121.88 *
Minor level - 121.09 *
Minor level - 119.53
Major level - 118.75
Minor level - 117.96
Minor level - 116.41
Major level - 115.63
Minor level - 114.85
Minor level - 113.28
Major level - 112.50
121.88 should be the objective.? The GLD will need to clear 123.44 to move higher.
Support should be at 120.31 and 119.53.
XLE:
Major level - 71.88
Minor level - 71.09
Minor level - 69.53
Major level - 68.75 *
Minor level - 67.96
Minor level - 66.41 *
Major level - 65.63
Major level - 62.50
67.96 is a minor support level and the key level in the short term.
Two closes under 67.96 and the XLE should drop to 65.63.
Apple:
Major levels for Apple are 106.25, 100, 93.75, and 87.50.
Apple closed just under the 100 level yesterday, at 99.65.
Minor support should be at 98.44 and 96.88.
103 should be a tough level to break through on the first attempt.
Watch list:
Bullish Stocks: AMZN, ULTA, LLL, MLM, RTN, ACN, ROK, SWK, ASML, CTAS, DKR, CCI, BURL, DRI, SINA
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Bearish Stocks:? BA, SIG, DIS, WAB, SBUX, NKE, HXL, CUK, AL
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Be sure to check earnings release dates.
