Last week, the S & P 500 ended up closing 46.68 points to the upside.? And this was at a time when it seemed that every market participant was looking for a steeper pullback.
Not us.? We were biased to the upside based on the failure of the S & P 500 to close for two consecutive days below 2,046.88.? The market did manage to close under that level for two days; however, they were not back to back days.
Both times that the S & P closed under 2,046.88, it managed to recover and close back above it.
As for the VIX, it got as high as 17.65 before selling off again.
The VIX ended the week closing at 13.12.? It was down 2.09 for the week or 13.74%.
The VIX is precariously close to the major 12.50 level, which puts us on alert that a pullback could be forthcoming.
The upside objective for the S & P 500 remains at 2,125, and the market is within 26 points of it.
Friday, is the release of the non farm payroll at 8:30 EST, and should provide extra volatility.
And of course, this is a short week, due to the holiday yesterday.
Tomorrow is our webinar at 12:00 EST.? If you do have a question or comment for the webinar, please feel free to email me at davismdt@gmail.com and I will try and address it.
Here are the key levels for the markets.
VIX:
Minor level - 20.31
Major level - 18.75
Minor level - 17.19
Minor level - 15.63 *
Minor level - 14.06 *
Major level - 12.50 *
Minor level - 10.94
The downside objective for the VIX remains at 12.50.
The VIX is very close to the 12.50 major support level.
Minor resistance at 14.84, 14.06, and 13.28.? Support at 10.94.
S & P 500 Cash Index:?
Minor level - 2,140.62
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 objective is now 2,125.
2,109.40 is a minor resistance level.
Support should be at 2,093.80 and 2,085.90.
2,062.50 should now be major 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 closed just under the 110.16 level, at 110.13 on Friday.
To move higher, the QQQ will still need two closes above 110.16.
110.94 should be minor resistance.
Minor support at 109.38 and 108.98.
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 continues to trade between the major 131.25 and 128.13 levels.? And 130.46 has been a tough level to break through, so the bias is a move back to 128.91.
Minor levels are 130.47, 130.08 and 129.69.
GLD:
Major level - 118.75
Minor level - 117.96
Minor level - 116.41 *
Major level - 115.63
Minor level - 114.85 *
Minor level - 113.28
Major level - 112.50
The GLD had another strongly bearish weekly bar last week, and closed at 115.62.? This is just one cent under the major
115.63 level.
The objective should be down to 112.50.
117.19 should be resistance.? Watch for minor support at 114.06.
XLE:
Major level - 71.88
Minor level - 71.09
Minor level - 69.53 *
Major level - 68.75 *
Minor level - 67.96 *
Minor level - 66.41
Major level - 65.63
Major level - 62.50
68.75 should be the objective for the XLE.? However, 67.97 is a short term resistance level.
Short term support levels are 66.80, 66.41, 66.03.? The Major 65.63 level should continue to offer support.
Same as Friday.
Apple:
Major levels for Apple are 106.25, 100, 93.75, and 87.50.
Apple is sitting right at a key resistance level.? The first level is the resistance line of 100.? The second level is that midpoint
of the bearish down gap, which is 100.70.
If it clears this area, then a continuation of the upmove would be expected, with an objective up to around the 109 area.
Watch list:
Bullish Stocks: ULTA, MLM, BDX, WAT, RTN, CB, ZBH, CXO, CTXS, ALGN, DGX, FIS, WPX, HLX
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Bearish Stocks:? SIG, ANTM, NKE, FL, HFC, CF, CVS, ERJ
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Be sure to check earnings release dates.
