Last week, the S & P 500 closed to the upside 33.13 points at 2,080.73.? However, last Thursday and Friday both had range contraction days.? After the contraction on Thursday, I would have expected an expansion on Friday, however that did not materialize.
In fact, Friday range was only 6.80 points, about one third of it's average true range.
This tells we should see an expansion coming.
The S & P 500 did close above 2,078.12 for three straight days, so I am still biased to the longside with an objective up to 2,125.
Pre open, the markets appear to be set to open lower.? As I write this, the S & P 500 is off by about 8 points.
Lower price levels should act as support and expect the market to turn up when the VIX begins to head down.
The number of companies reporting this week should be quite high.? And there are a few high profile companies reporting like, IBM, GS and HON.
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 *
Objective should be to 12.50.? Minor support is at 13.28.
Look for resistance at the 14.06 and 14.84 levels.? As the VIX heads down, is
when the markets should reverse to the upside.
?
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
Current objective is now to 2,125.? However, the 2,093.80 should be strong resistance.?
2,078.10 and 2,062.50 should act as support at this point.
The 2,070.30 level should also be minor 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
Like the S & P 500, the QQQ has had three closes now above the 110.16 level, which means the objective should be to 112.50.
Support should be at 109.38 and 108.60.
TLT:?
Major level - 134.38
Minor level - 133.59
Minor level - 132.03 *
Major level - 131.25 *
Minor level - 130.46
Minor level - 128.91
Major level - 128.13
The TLT is struggling to get above the 132.03 level. Two closes above 132.03 and the objective should be to 134.38.
131.25 should be a key short term support level, so look for a reaction at that level. If Apple gets under that level, it should be resistance.
GLD:
Major level - 125.00
Major level - 121.88
Minor level - 121.10
Minor level - 119.53 *
Major level - 118.75
Minor level - 117.96
Minor level - 116.41
Major level - 115.63
Minor level - 114.85
The GLD did close under 117.96 on Friday, so the objective should be to 115.63.
Resistance should be at 118.75.
XLE:
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
Minor level - 61.72 *
XLE is selling off since hitting almost the 65.63 level.? It came within 7 cents of that level.
Look for 62.50 and 61.72 to act as support.
Apple:
Major levels for Apple are 112.50, 106.25, 100, 93.75, and 87.50.
Apple sold off Friday based on news from a supplier on a slow down in production.
However, Apple was right up against the mid band on the daily chart, which should act as resistance.
A close today under 110.83 and Apple should retest 106.25.
107.81 should act as a short term support level.
Watch list:
Bullish Stocks: GOOGL, AMZN, AYI, BIDU, BDX, MMM, LLL, HD, ACN, HON, ALGN
Bearish Stocks: AGN, PANW, AGU, TSO, DDS, ZBRA, VLO, AKAM, STX, NTAP
Be sure to check earnings release dates.
