The S & P 500 closed 10.53 points to the downside last week, with most of the sell off happening from Wednesday to Friday.
The question now is this the start of a major correction or simply just a pullback in a strong bull market?
Friday was the first day that closed under 2,046.88, when it closed at 2,046.61.
A close today under 2,046.88 and the downside objective becomes 2,000.? At this
point, 2062.50, which happened to be Friday's high, should act as resistance.
The VIX continues to move up and closed Friday at 15.04.? As long as the VIX
continues to move up, you should expect the markets to retreat.
If the S & P 500 pulls back to 2,000, I believe the bull market would still be intact. It could drop to the 1,937.50 level and I would still feel the same. If the market closed under 1,937.50, I would expect a retest of the 1,812 level or even 1,750.
Here are the key levels for the markets.
VIX:
Major level - 25.00
Minor level - 23.44
Minor level - 20.31
Major level - 18.75
Minor level - 17.19 *
Minor level - 15.63 *
Minor level - 14.06 *
Major level - 12.50
The objective for the VIX should be to 18.75.? However, it needs to get through 15.63, which has acted as strong resistance.
Short term levels are 15.23, 14.84, 14.45, and 14.06.
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
The 2,062.50 level should now be strong resistance.
A close today under 2,046.88 and the objective becomes 2,000.
Minor support is at 2,031.30.
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 had an inside day on Friday, which means there should be an expansion of range forthcoming.
Also, the QQQ closed just above the 105.46 level on Friday.? It would still need two closes under 105.46 to move lower.
Minor support is at 105.08 and 104.69.
TLT:?
Major level - 132.81
Minor level - 132.42
Minor level - 132.03
Major level - 131.25 *
Minor level - 130.46
Minor level - 128.91 *
Major level - 128.13
The TLT closed at 132.28 on Friday. A close today above 132.03 and the TLT should head up to 132.81.
If it can clear 132.81, it paves the way for a move up to the 138 area.
Minor support is at 132.03 and 131.64.
GLD:
Major level - 125.00
Minor level - 124.22
Minor level - 122.66
Major level - 121.88
Minor level - 121.10 *
Minor level - 119.53
Major level - 118.75
Minor level - 117.96
To move up to 125, the GLD will need two closes above 122.66.
Minor support should be at 120.31 and 118.75.
XLE:
Minor level - 69.53
Major level - 68.75
Minor level - 67.96
Minor level - 66.41 *
Major level - 65.63 *
Minor level - 64.84 *
Minor level - 63.28
Major level - 62.50
A close today under 65.23 and the XLE could test the 64 level.
62.50 should be major support.
Very close to moving into an uptrend on the daily chart.
Apple:
Major levels for Apple are 106.25, 100, 93.75, and 87.50.
Apple is defintiely oversold on most timeframes.? 90.63 is a short term level that if it can close above it, it could move up quickly.
If it cannot get above 90.63, it should drop to 87.
It has moved into downtrends on it's shorter term charts.
Watch list:
Bullish Stocks: AMZN, LMT, BCR, STZ, CLX, FB, NEE, RTN, ZBH, DPS, XOM
?
Bearish Stocks: REGN, HUM, AMGN, ALXN, ANTM, PANW, AET, CSL, CELG,
?
Be sure to check earnings release dates.
