While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to six-month time frame, Mad Day Trader, provided by Bill Davis, will exploit money-making opportunities over a brief ten minute to three day window. It is ideally suited for day traders, but can also be used by long-term investors to improve market timing for entry and exit points.
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Tomorrow is our webinar. Be sure to email me directly if you would like me to review any particular charts. My direct email is davismdt@gmail.com and is always listed at the end of the webinar handouts.
Now onto the markets.
The S & P 500 ended up closing 2.54 points to the upside, at 2,584.84.
The low for the day just happened to be 2,774.48, just two cents lower than the 2,774.50 level I mentioned in yesterday's update.
With a bullish price bar yesterday, watch for support in the 2,581 area. Pre open, the market is selling off slightly, so you want to see if this level can be recouped. If it can't, it should offer resistance.
The VIX hit a high of 12.18 before selling off yesterday. This was only 7 cents above the minor 12.11 level. Quite frankly, I was looking for a retest of 12.50, but that may happen today. And I still expect 12.50 to offer resistance.
Remember, as the VIX stalls out and reverses and starts to head down, that is the indication the markets should head up.
The market has been rather quiet lately, waiting for the next move to happen.
I am still biased to the upside with objectives higher than the current market.
The major 2,578 level should offer support at this time. And if that is violated, I would not expect a sell off to drop under 2,500.
The shorter term 30 minute and 60 minute charts still remain in uptrends, so buying when they are oversold is still a viable strategy.
Continue to follow the resistance levels.
Here are the Key Levels for the Markets:
$VIX:
Major level: 12.50
Minor level: 12.11
Minor level: 11.33
Major level: 10.94
Minor level: 10.55
Minor level: 10.16 **
Major level: 9.38 <
Minor level: 8.99
Minor level: 8.20
Major level: 7.81
With a close yesterday above 10.16, the VIX should test 12.50. I would still expect resistance at the 12.50 level.
10.94 should now be support. And 13.28 should offer resistance.
$SPX:
Minor level: 2,675.83
Major level: 2,656.30
Minor level: 2,636.75
Minor level: 2,597.65 <
Major level: 2,578.10 **
Minor level: 2,558.58 <
Minor level: 2,519.53
Major level: 2,500.00
Minor level: 2,484.3
The S & P 500 closed just above the major 2,578.10 level. This level should be support. And minor support is at 2,568.40 and 2,574.50.
To move higher, the S & P 500 will need two closes above 2,597.65 and to move lower, two closes under 2,558.58.
Watch for support at 2,574.50. Watch this level today.
QQQ:
Major level: 156.25
Minor level: 155.47
Minor level: 153.91 **
Major level: 153.13 < Hit
Minor level: 152.35
Minor level: 150.78
Major level: 150.00
Minor level: 148.44
Minor level: 145.31
Major level: 143.75
The QQQ closed at 153.87. 152.34 should be minor support.
And 153.13 should continue to be support. And 152.34 should also offer support. Minor resistance is at 154.69.
IWM:
Minor level: 150.78
Major level: 150.00
Minor level: 149.22
Minor level: 147.66 ***
Major level: 146.88 <
Minor level: 145.32
Minor level: 144.53
Major level: 143.75
Minor level: 142.97
The IWM closed at 146.61, 27 cents under the major 146.88 level.
146.09 is the level to watch. If the IWM closes under 146.09, I would expect a drop to the 143.75 level.
The IWM needs to recoup the 146.88 level to move higher.
TLT:
Major level: 128.13
Minor level: 127.35
Minor level: 125.78 **
Major level: 125.00 <
Minor level: 124.61
Minor level: 123.83
Major level: 123.44
Minor level: 123.05
Minor level: 122.27
Major level: 121.88
The TLT closed at 124.36, dropping under the 125 level.
At this point, the TLT is trading between the major 125 and major 123.44 levels. 125 should be resistance.
And if the TLT closes for two days under 123.44, it could drop to 118.
The objective should be to 123.44.
GLD:
Minor level: 125.78
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
The GLD closed at 121.31. 121.88 should now be resistance.
At this point, 125 should be resistance and a drop to 112 is possible.
XLE:
Major level: 73.44
Minor level: 72.66
Minor level: 71.09
Major level: 70.31
Minor level: 69.92
Minor level: 69.14 **
Major level: 68.75 <
Minor level: 68.36
Minor level: 67.58
Major level: 67.19
The XLE closed at 69.26. Look for a retest of the 68.75 level.
69.14 is now short term support. If this is violated, a move to 68.75 should happen.
The 60 minute chart is close to moving into an uptrend. If it can move into an uptrend, I expect the XLE to head higher.
Also, with the XLE trading above the midband on the daily chart, it should offer support. That level is 67.82.
FXY:
Major level: 89.06
Minor level: 88.67
Minor level: 87.89
Major level: 87.50
Minor level: 87.11
Minor level: 86.33
Major level: 85.94 <
Minor level: 85.55 ***
Minor level: 84.77
Major level: 84.38 <
The FXY closed at 84.53. Watch the 84.77 level. If the FXY can close above this level for two days, it should head up to 85.94. However, the FXY is struggling to close above it.
84.38 is minor support. 84.96 is minor resistance.
AAPL:
Major levels for Apple are 175, 171.88, 165.63, 162.50, 159.38, and 156.25.
Yesterday, Apple closed at 173.97, just under the 175 level.
Minor support should be at 173.44 and 178.10 is minor resistance.
WATCH LIST:
Bullish Stocks: AMZN, NTES, ALGN, NVDA, AAPL, WYNN, MA, RCL, VMW, V, CRM, WDC, D, SPLK, LULU, FSLR, NKE, WGO
Bearish Stocks: AGN, WHR, UHS, UHS, TSRO, SRCL, ALK, PZZA, DVA, DAL, ALKS
Be sure to check earnings release dates.
