For all the talk about how the markets would take a hit based on a Trump win, the pundits can now bury their heads in the sands. Once again, this just goes to show how off the mark the supposed experts are.
Unfortunately for us, as retail traders, this was a move that you could not take advantage of.? This was because the major sell off happened during the evening session.
And the sell off was happening late in the evening when it became clear that Trump would be the winner.
Yesterday, the S & P 500 continued to follow through and close at 2,163.26.? Up another 23.70 points on the day. And the high for the day was within 18 points of the 2,187 level.
As this upmove was happening, the VIX was collapsing.? Yesterday, the VIX was down 23.27% or 4.36.
Since peaking at 23.01 on the 4th, the VIX has dropped to 14.38.
This again shows you that if you are trading long the VIX, you need to take profits quickly.
Quite frankly, I was looking for the VIX to hit the upper band on the daily, which was 26.44. The VIX did not quite get there, falling a few points short, before coming back down.
Continue to monitor the levels for entry points.
Here are the Key Levels for the Markets:
$VIX:
Major level - 25.00
Minor level ? 24.22
Minor level ? 22.66
Major level ? 21.88
Minor level ? 21.10
Minor level ? 19.53
Major level - 18.75 *
Minor level - 17.96
Minor level - 16.41
Major level - 15.63
Minor level - 14.85
Minor level - 13.28
Major level - 12.50
The VIX closed at 14.38.? The VIX is almost back to the major 12.50 level.? At this point, look for 17.19 to offer resistance.? 14.06 could offer some support.
$SPX:
Major level - 2,250.00
Minor level - 2,234.38
Minor level - 2,203.12
Major level - 2,187.50
Minor level - 2,171.88
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
2,140 should now be support.? There is a minor resistance level at 2,171.90.? If the S & P 500 can clear this level, it should continue up to 2,187.
If it stalls at 2,171.90, look for a pullback to around 2,148 or perhaps 2,156.? Both these levels should offer support.
QQQ:?
Major level - 121.88
Minor level - 121.10
Minor level - 119.53
Major level - 118.75
Minor level - 117.97
Minor level - 116.41 *
Major level - 115.63 *
Minor level - 114.84
Minor level - 113.28
Major level - 112.50
The objective for the QQQ should be back to 118.75.? 116.41 should offer support. The QQQ needs to clear 117.69 to head higher.
TLT:?
Major level - 137.50
Minor level - 136.72
Minor level - 135.16
Major level - 134.38
Minor level - 133.60
Minor level - 132.03 *
Major level - 131.25 *
Minor level ? 130.46 *
Minor level ? 128.91
Major level ? 128.13
The TLT closed at 124.57, down 5.52 yesterday.? It also had a massive selling climax, with volume over four times the average volume. At this point, the key price level is 121.88.? If the TLT does close under that level, it should continue lower.
Minor support is 123.44 and resistance is at 125.78.
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 ? 117.97
If the GLD closes under 121.88 today, I expect a move down to around 115. And possibly lower.
121.09 is a minor support level. And yesterday?s low was a penny above it.? 122.27 should be minor resistance.
XLE:
Major level - 75.00
Minor level - 74.22
Minor level - 72.66
Major level - 71.88 *
Minor level - 71.10
Minor level - 69.53 *
Major level - 68.75 *
Minor level - 67.96
Minor level - 66.41
Major level - 65.63
A close today above 69.53 and the objective should be to 71.88.? 71.09 is minor resistance, so if the XLE can clear that level, it should continue higher.
70.31 should be minor support.
FXY:
Major level: 96.88
Minor level: 96.49
Minor level: 95.70
Major level: 95.31
Minor level: 94.92
Minor level: 94.14
Major level: 93.75
Minor level: 93.36
Minor level: 92.58
Major level: 92.19 *
Minor level: 91.80
Minor level: 91.02
Major level: 90.63
90.63 should be the objective.? 91.02 is a minor support level so if it is violated look for a move lower.? 91.60 should be resistance.
AAPL:
Major levels for Apple are 118.75, 115.63, 112.50, 106.25, 100, 93.75, and 87.50.
Watch the 110.94 level.? Two closes under that level and Apple should drop to 106.25.
Same as yesterday.? 110.94 is the key today.
WATCH LIST:
Bullish Stocks: FDX, ACN, CXV, DRI, AGO, STLD, DRI, BHI ?
Bearish Stocks:? REGN, TSLA, AGN, PANW, COST, ANTM, CLX, JAZZ, ATHN
Be sure to check earnings release dates
