Yesterday, the S & P 500 hit the 2,062.50 objective, closing at 2,063.95 or almost 1.50 above the level.
The high for the day was 2,072.21. This was about 6 points under the next upside level, which is 2,078.12.?
The question now is should we be looking for a pulback in the markets?
The VIX is almost down to the major 12.50 objective.? Yesterday, it hit a low of 13.06 before reversing and closing at 13.56.? The VIX may get one more push down to 12.50 before firming up, but at these levels, it is time to be cautious.
Tomorrow is the release of the non farm payroll, so today could end up being a narrow range day waiting for the results of the report.
Also, today is the end of the first quarter of 2016.? And tomorrow is also triple witching day, so expect excess volatility on April fools day.
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
At this point, both 14.06 and 15.63 should act as resistance.? The major objective is to 12.50 and the VIX is very close to hitting it.
For the VIX to bottom, it would have to run up to the 17.19 level.? If it bounces less than that, I would expect more churn.
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
The 2,062.50 objective has been hit. The 2,070 level did offer resistance yesterday.
For the S & P 500 to move up to the next level, it will need two closes above 2,078.12.
For the shorter term, two closes above 2,070.33 and the objective would be to 2,093.80.
Support should be at 2,054.68 and 2,046.88.
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
The QQQ hit a high of 110.04 yesterday, exceeding the 109.38 objective by .66.
110.16 is a minor resistance level that if exceeded should tell us the QQQ will go higher.? However, it is a level that would be tough to take out on the first attempt.
Support should be at 108.60.
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
The TLT stopped yesterday just above the 128.91 support level.? This should be strong support for the TLT.?
A close today above 128.91 and the TLT should 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 GLD closed yesterday at 117.10.? If it closes today under 117.96, it should drop down and retest the 115.63 level.
Resistance should be at 118.75.? To move higher, it will need two closes above 119.53.
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 did hit the 62.50 level yesterday and had a high of 62.62.
At this point, lower levels should act as support, namely 61.33 and 60.94.?
To move higher, the XLE will need to get through 62.50 and have two closes above 63.28.
I would not expet a sell off to exceed the 56 area.
Apple:
Major levels for Apple are 112.50, 106.25, 100, 93.75, and 87.50.
Apple did break through the 109.38 level yesterday, with a high of 110.42.
Lower levels should act as support.? The upside objective should be to 112.50.
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.
