The fallout from the Brexit vote continues today, with the markets set to open to the downside again.
The SPY is down just over 21 points as I write this before the open.
Though the S & P was down just under 76 points on Friday, for the week it was down 33.81.? So, all the damage happened
after the results from the vote came in.
I mention this because the S & P 500 was down the prior week 24.85 points.? So last week was down only 9 points more than the prior week.
The only positive from Friday was that it qualified as a selling climax. The down to up volume was 12.02.
Can we have another climax day?
Absolutely.? But another climax day would most likely indicate that we are closer to a bottom.
A few questions remain, such as how high can the VIX go? And where should the market most likely bottom?
Late last Friday, the S & P 500 staged a minor rally and ran up to over 2,046.88.? The rally failed and the market moved down to close at 2,037.41.
2,046.88 is the downside confirming level to 2,000. This sets up a scenario that if the S & P 500 closes under 2,046.88
today, the downside objective becomes 2,000.
2,000 should be a major support level.? And if the market should find support there, the uptrend is still intact.
The next major level under 2,000, is 1,937.50.? If that level is violated, a move down to a retest of 1,812.50 would be expected.
Here are the key levels for the markets.
VIX:
Major level - 31.25
Minor level - 28.91
Major level - 28.13
Minor level - 27.35
Minor level - 25.78 *
Major level - 25.00 *
Minor level - 24.21
Minor level - 22.66
Major level - 21.88
Minor level - 21.09 *
Minor level - 19.53
Major level - 18.75
The VIX closed Friday 25.76, just two cents under the upside level to 28.13.? So, it still needs two daily closes above 25.78 to move higher.
Support should be at 25.
Long term, a move up to 37 could be where the VIX stalls out.
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
2,000 should be major support for the S & P 500.
A close today under 2,046.88 and the S & P should drop to 2,000.
Other levels to watch today are 2,031.30 and 2,015.60.
Resistance now is at 2,062.50.
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 *
Minor level - 103.91
Major level - 103.13
Major level - 100.00
A close today under 105.46 and the objective becomes 103.13.
100 is the major support level for the QQQ.
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
The TLT closed at 135.78 on Friday.? A close today above 135.16 and the objective becomes 137.50.
Resistance should be 140.63.
GLD:
Major level - 128.13
Minor level - 127.35
Minor level - 125.78
Major level - 125.00
Minor level - 124.22
Minor level - 122.66
Major level - 121.88 *
Minor level - 121.09 *
Minor level - 119.53
Major level - 118.75
The GLD closed at 126.01 on Friday.? A close today above 125.78 and the objective is to 128.13.
131.25 is a level I would not expect the GLD to break through on this drive.
Watch the 127.35 level.
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
A close today under 67.96 and the XLE should drop to 65.63.
62.50 should be major support.
Apple:
Major levels for Apple are 106.25, 100, 93.75, and 87.50.
Apple closed at 93.40 on Friday.? A close today under 93.75 and the downside objective becomes 75.
95.31 should be resistance.
Watch list:
Bullish Stocks: MMM, CBRL, CLX, CXO, JNJ, INGR, DLR, HSY, DTE, MJN, DGX
?
Bearish Stocks:? REGN, BIIB, AMGN, GS, FLT, PANW, ALXN, EXPE, CELG, MA, PII, GRA, RCL, COF
?
Be sure to check earnings release dates.
