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MDT Pro Tips - 5/21/20
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The S & P continued to drift slightly higher yesterday. The market managed to close 48.78 points higher.
The day closed out at 2,971.61. The intraday range was only 26.66 points. But that's because once again, there was a strong bullish gap open of 30.69 points.
The daily bar closed at 67% of the range of the bar, so the odds still favor the high being violated before the low.
The high for the day was 2,980.29 and the low was 2,953.63.
This puts the support area from yesterday's daily bar in the 2,962 to 2,967 area.
And speaking of the high, it came within 3 points of the midband on the daily chart, which is now 2,983.19.
The question now is can the S & P clear this level?
At this point, it is still resistance. So, watch this level today.
Pre open, the S & P is trading about 14 points lower. This would project to an open around 2,957.
The open would be around 4 points above yesterday's low. So, watch to see if it is taken out.
If the market rallies, the look for resistance around 2,962.
Of course, the VIX should help to confirm what the market should do.
The VIX is still dropping and if it reverses to the downisde, the market should head higher.
Watch the levels on the VIX below.
This afternoon, we get earnings from NVDA, PANW and SPLK. BABA and DE report tomorrow morning.
Here are the Key Levels for the Markets:
$ VIX:
Minor level: 39.84
Minor level: 38.28
Major level: 37.50
Minor level: 36.72
Minor level: 35.16
Major level: 34.38
Minor level: 33.60
Minor level: 32.03
Major level: 31.25
Minor level: 30.47
Minor level: 28.91
Major level: 28.13 <
Minor level: 27.35
Minor level: 25.78
Major level: 25.00
The VIX closed at 27.99. The VIX closed 2.54 points lower yesterday.
It closed just under the major 28.13 level. At this point, it will need two closes under 27.35 to move lower.
The 29 area should be technical resistance for today. This is right at the minor 28.91 level, which should also be resistance.
If the VIX takes out 29, 31.25 should still be resistance.
S & P 500:
Minor level: 3,007.85 **
Major level: 2,968.80 <
Minor level: 2,929.75 **
Minor level: 2,851.65
Major level: 2,812.50
Minor level: 2,773.45
Minor level: 2,695.35
Major level: 2,656.30
Minor level: 2,617.25
Minor level: 2,539.06
Major level: 2,500.00
The S & P closed at 2,971.61. The S & P closed just above the major 2,929.75 level.
The minor 2,929.75 level should be support. The market should open around 2,958.
There is technical support right around the 2,957 level. So, watch how the market reacts after the open.
I break under 2,857 and the S & P should head lower to most likely test yesterdays low of 2,953.63.
QQQ:
Major level: 237.47
Minor level: 235.91
Minor level: 232.78 **
Major level: 231.22 <
Minor level: 229.66
Minor level: 226.56
Major level: 225.00
Minor level: 223.42
Minor level: 220.31
Major level: 218.75
Minor level: 217.19
Minor level: 214.06
Major level: 212.50
Minor level: 210.93
The QQQ closed at 231.39. This put the QQQ above the 231.22 objective we were looking for.
Watch the minor 232.78 level on the upside. And on the downside, 229.66 should be support.
The 232.50 area should be support from yesterday's daily bar.
IWM:
Major level: 150.00
Minor level: 148.44
Minor level: 145.31
Major level: 143.75
Minor level: 142.19
Minor level: 139.06
Major level: 137.50
Minor level: 135.94
Minor level: 132.81 **
Major level: 131.25 <
Minor level: 129.69
Minor level: 126.56
Major level: 125.00
Minor level: 123.44
Minor level: 120.31
Major level: 118.75
The IWM closed at 134. This was the first close above 132.81 for the IWM. A close today above would suggest a move up to 137.50.
131.25 should be support now.
The 133 area should be technical support.
TLT:
Major level: 168.75
Minor level: 167.97 **
Minor level: 166.41
Major level: 165.63
Minor level: 164.85
Minor level: 163.28 **
Major level: 162.50 <
Minor level: 161.72
Minor level: 160.16
Major level: 159.38
Minor level: 158.60
Minor level: 157.03
Major level: 156.25
Minor level: 155.48
The TLT closed at 164.15. The TLT closed above the minor 163.28 level. If it can hold this level today, it should test 165.63.
The 163 area should be technical resistance.
The TLT is in a downtrend on the 60 minute chart. Resistance on that timeframe is around 166.
GLD:
Major level: 165.63 <
Minor level: 164.85
Minor level: 163.28 **
Major level: 162.50 <
Minor level: 161.72
Minor level: 160.16
Major level: 159.38
Minor level: 158.60
Minor level: 157.03
Major level: 156.25
Minor level: 155.47
Minor level: 153.91
Major level: 153.13
The GLD closed at 164.65. The target should be up to 165.63.
The minor 163.28 level should be support.
Technical resistance is around 164.
XLE:
Minor level: 47.65
Major level: 46.88
Minor level: 46.09
Minor level: 44.53
Major level: 43.75
Minor level: 42.97
Minor level: 41.41
Major level: 40.63 <
Minor level: 39.83
Minor level: 38.28 **
Major level: 37.50 <
Minor level: 36.72
Minor level: 35.15
Major level: 34.27
The XLE closed at 39.35. A close today above 38.28 and the XLE should head up to 40.63.
The major 37.50 level should be support. And the minor 38.28 should also be support.
Technical support should be around 38. And resistance at the 42 level.
AAPL:
Major level: 325.00
Minor level: 321.88
Minor level: 315.63 **
Major level: 312.50 <
Minor level: 309.38
Minor level: 303.13
Major level: 300.00
Minor level: 296.88
Minor level: 290.63
Major level: 287.50
Minor level: 284.38
Minor level: 278.13
Major level: 275.00
Apple closed at 319.23. With a close above 315.63 today, Apple should head up to 325.
The minor 315.63 level should be support.
The 316 area should now be support.
WATCH LIST:
Bullish Stocks: SHOP, REGN, NFLX, DPZ, HUM, NVDA, VRTX, RNG, LULU, WST, COUP, ZM, KLAC, SMG, BAND, MRNA, CHGG, AZN
Bearish Stocks: PSA, HSY, CAT, FDX, CB, AIZ, UPS, EXR, NTRS, ED
MDT Pro Tips - 5/21/20
