Yesterday sold off to a low of 2,025.91, before rallying to close at 2,040.04.
As you know, the S & P 500 has been flirting with the 2,046.88 level for about a week now.? The key today will be to see if it can recoup that level.? If it can't and closes under 2,046.88 today, then the objective should be back to 2,000.
Having said that, for a bearish day, the price action was actually rather bullish with the S & P 500 forming somewhat of a hammer bar on the daily chart.
We will no doubt retest the 2,046 level this morning, so the reaction around that level should give us a clue as to the daily direction.
The VIX shot up to a high of 17.65 before closing lower at 16.33.? As you know, 16.41 is a minor resistance level and it should be tested today.? Watch if the VIX cannot get through this level as a clue for the market to head back up.
There is one open position that expires today and that is the long calls on CTXS.? CTXS is trading right around the strike price and if it gets a push up, I will look to close them out and recoup what we can.
CTXS has held up well during this market pullback, and should most likely rally.?
Though I love the leverage of shorter term options, this demonstrates why I like to limit the amount invested in the shorter term options.
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
I mentioned how the VIX had moved into a downtrend on it's daily chart. Yesterday's high stopped right at the midpoint of the extreme bollinger bands.? That level is 17.77 and the high was 17.65.
Watch the minor levels of 17.97, 17.19 and 16.41.
15.63 should be major support and a break under that level would be significant.
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
A close today under 2,046.88 and the downside objective should be 2,000.
Minor levels for today are 2,031.30, 2,039.10 and 2,054.70.
2,039.10 should be strong support.
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 formed a small doji bar yesterday, with the close almost equal to the open.
Yesterday's high was 105.71 and if it is taken out today, that would be bullish.
A close today under 105.46 would indicate that 103 should be retested, so expect this level to be key today.
Minor levels are 104.69, 105.08 and of course, 105.46.
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 stopped yesterday at 128.91, which should be a support level.
A break under that level and expect a retest of 128.13.
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
The GLD stopped yesterday at 118.92, just a few cents above the 118.75 support level.
Short term levels for today should be 118.75, 119.53 and 120.31.
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
The XLE ended up closing a penny to the upside yesterday, at 65.77.? This is just above the major 65.63 support level.
Short term levels are 6.02, 66.41 and 64.84.
Apple:
Major levels for Apple are 106.25, 100, 93.75, and 87.50.
Apple held just above the 93.75 level yesterday.
Short term levels should be 92.97, 93.75 and 94.53.
Watch list:
Bullish Stocks: LLL, ZBH, CRL, DGX, ALB, WBMD, A, NVDA, CLR, SIMO
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Bearish Stocks: BIIB, GS, AMGN, FLT, ANTM, AET, CELG, CRI, YUM
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Be sure to check earnings release dates.
