Last week's short week ended with the S & P 500 closing off 13.64.? Thursday, the market bottomed out at 2,022.49, before rallying and closing down for the day at 2,035.94.
This was back above the minor 2,031.30 support level I mentioned last Thursday.
Pre open, the markets appear set to open with a slight bullish bias. Having said that, the S & P 500 did have two closes under 2,046.88, which means that 2,000 could be retested.
The 2,046.88 level should now be resistance. If the S & P can close above that level, I would expect a move up to 2,062.50.
The VIX should help us in the immediate future to determine where the markets should go.
The VIX got slightly above the 15.63 level on Thursday and dropped the rest of the day, before closing at 14.74.? I still expect a move down to 12.50 and at that level a bounce would be expected.??
This Friday is the release of the non farm payroll at 8:30 EST.? Expect volatility as a result of that report.
The short $4.50 call on DUST did expire last week.? I will look to sell more calls this week, depending upon how DUST trades.
Here are the key levels for the markets.
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VIX:
Major level - 25.00
Minor level - 23.44
Minor level - 20.31
Major level - 18.75
Minor level - 17.19 *
Minor level - 14.06
Major level - 12.50
14.06 could be a strong support area for the VIX.? If it does get under 14.06, I would expect 12.50 to be hit.
At this point, higher levels should still act as resistance.? I would not expect a deep pullback in the markets until the 12.50 level is tested.
S & P 500 Cash Index:?
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
Minor level - 1,921.88
On the downside, 2,000 should be tested. Watch how the S & P reacts around the 2,047 level.? If it fails at that level, a move down would be warranted.
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2,031.30 should still be a minor short term support level.
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
109.38 should act as a resistance level at this point.? And watch how the QQQ trades around the 108.60 level, as that could offer some resistance.
If the QQQ does reverse, a move to 106.25 would be the likely scenario.
TLT:?
Minor level - 132.03
Major level - 131.25
Minor level - 130.46
Minor level - 128.91*
Major level - 128.13 *
Minor level - 127.34
Minor level - 125.78
Major level - 125.00
Lower levels should still act as support.? 128.91 and 128.13 should be support for the TLT.
The objective should be a move up to 131.25.
GLD:
Major level - 125.00
Major level - 121.88
Minor level - 121.10
Minor level - 119.53
Major level - 118.75 *
Minor level - 117.96
Minor level - 116.41 *
Major level - 115.63
The objective for the GLD should be to 115.63.? Resistance should be at 117.96 and 118.75.
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
The XLE should test 62.50 again.? To move higher that that level, it will need two closes above 63.28.
Lower levels should continue to act as support.
Apple:
Major levels for Apple are 112.50, 106.25, 100, 93.75, and 87.50.
Apple is trading right around the 106.25 level.? To move up, Apple would need two closes above 107.81.? To drop, it would need two closes under 104.68.
Watch list:
Bullish Stocks: ACN, BCR, FB, JNJ, UPS, VMC, ITW, NOC, XOM, LNT
Bearish Stocks: GD, JACK, LULU, BURL, BLUE, SHLD, KR, AZN, ALDR
Be sure to check earnings release dates.
