The S & P 500 closed slightly to the downside yesterday, at 2,048.04.
As a reader of this daily update, you no doubt recognize the significance of that price. Even though it was slightly bearish, the market managed to close above the 2,046.88 level.
For that matter, you only have to look at a daily chart to see how many days the S & P 500 trading around this level.
Closing above that level, gives the nod to the bulls.? And it looks like that is confirmed by the fact that the S & P 500 is set to open to the upside this morning.
For the market to sell off, it will need two closes under 2,046.88.
The other technical condition yesterday was that the market had an inside day and a range contraction.
Yesterday's range was only 8.32 points compared to an average true range of 19.63. This was almost exactly one half the average.
A range expansion would be expected.
Finally, the 200 ema continues to creep closer to the 253 day average.? When they do cross to the upside, I will expect further upside movement.
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 VIX closed yesterday at 15.82 and had a high of 16.47.? This was just 6 cents above the 16.41 short term resistance level I mentioned yesterday.
Watch how the VIX reacts around the 15.63 level today.
Short term levels are 16.02, 15.23 and 14.84.
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 S & P 500 will still need two closes under 2,046.88 to retest 2,000.
Like the VIX yesterday, the high for the S & P 500 was within 1 point of the minor 2,054.70 level.
2,046.88 should be support. Minor levels are at 2,054.70, with the major level of 2,062.50 within sites.
2,070.30 is also a minor 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
The QQQ closed just above the 106.25 level.
To move higher, the QQQ will need two closes above 107.03.
Minor levels are 105.86, 106.64 and 107.42.
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 130.44 yesterday. I would expect a retest of 128.13 at this point.
The TLT will have to clear 130.46 to move higher.
Minor levels are 129.69, 129.30 and 130.86.
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 closed at 119.36 yesterday. And yesterday's low was exactly 118.75.
If this level can hold, the GLD should bounce.? To move lower, it will need two closes under 117.96.
The GLD had a bearish price bar last week and resistance should be around 121.
Major support is at 117.19.
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 closed above 65.63 yesterday.? To move higher, it will need two closes above 66.41.
Short term support levels are 66.80, 66.02, 65.23.? The Major 65.63 level should continue to offer support.
Apple:
Major levels for Apple are 106.25, 100, 93.75, and 87.50.
Apple continues to move up and closed at 96.43.? The open gap at around 103 is still a logical target for Apple.
A close today above 95.31 and the objective becomes 100.
93.75 and 92.97 should be support now.? Bias has shifted to the upside for the short term.
Watch list:
Bullish Stocks: LLL, ZBH, DHR, CRL, LOW, ALGN, APA, NVDA, DGX, CRL
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Bearish Stocks:? GS, AMGN, FLT, ANTM, CMI, CVS, CELG, WBA, YUM
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Be sure to check earnings release dates.
