The see saw battle continues, with the S & P 500 giving back gains from Monday and closing to the downside just over 18 points.
The oversold VIX condition has been the indication to expect some rocky price action.? And the VIX has now moved into a short term uptrend, which tells us to expect more selling pressure.
At this point, the objective to the upside for the VIX is 18.75.? Should the VIX stall at 18.75 and reverse to the downside, I would expect this pullback to end.
However, if the VIX can rally up to 21.88 on this drive, and then pullback, it would indicate a larger correction forthcoming for the markets.
As for the S & P 500, the 2,062.50 level had been strong support, however it certainly appears that it will be violated this morning.? The next key level will be 2,046.88.
That is because if the S & P does close under that level for two days, a move to 2,000 would be expected.
2,000 should be strong support, however if that cannot hold, I would expect 1,937.50 to.
Priceline reported this morning and sold off about $108 before the open.? On today's webinar I will look at a few companies announcing earnings and show how to predict their anticipated move.
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
18.75 should be the objective for the VIX.? 17.19 is still minor resistance.
The VIX closed at 16.43 yesterday, so watch how it reacts around the 17.19 level today.? If it stalls against that level, it should pull back.? If it clears that level, expect it to act as support.
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
2,046.88 is the key level at the moment.? Two closes under that level confirm the
move down to 2,000.2,054.70 is a minor support 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 under 106.25 yesterday, at 105.73.? The key level is 105.46.? Two closes under that level and the downside objective becomes 103.91.
107.03 and 106.25 should be resistance.
TLT:?
Minor level - 132.03
Major level - 131.25
Minor level - 130.46
Minor level - 128.91 *
Major level - 128.13 *
Minor level - 127.35
Minor level - 125.78
Major level - 125.00
The TLT closed back above 128.13, at 129.43.? A close today above 128.91 and the upside objective becomes 131.25.
128.13 should become support again.
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
If the GLD closes under 122.66, look for a move down to 119.
Major support should be at 115.63.
XLE:
Minor level - 69.53
Major level - 68.75
Minor level - 67.96
Minor level - 66.41
Major level - 65.63 *
Minor level - 64.85 *
Minor level - 63.28
Major level - 62.50
Yesterday's low was 65.43, just 20 cents under the major support line at 65.63.
64.85 is the next level down.? Two closes under 64.85 and the objective becomes
62.50.
The XLE could drop to 62.50 and the uptrend would still be intact.
Apple:
Major levels for Apple are 106.25, 100, 93.75, and 87.50.
Apple was one of the few stocks bucking the trend yesterday and closed to the upside $1.54.
That should not be a shock because of how oversold it was on a short term basis.
Watch this rally and if it falters, a short would be warranted.
Watch list:
Bullish Stocks: AMZN, LMT, BCR, ULTA, BDX, CLB, RTN, LLL, NOC
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Bearish Stocks: CMG, AGN, BWLD, AAPL, PRGO, TGT, VRSK, SWKS
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Be sure to check earnings release dates.
