The S & P 500 sold off almost 20 points yesterday.? I mentioned the minor 13.28 support level on the VIX and that is exactly where the VIX found support.
Actually, the VIX found support 2 cents above that level and proceeded to run up to a high of 15.45.? A move of? 2.15 points or 16%.? This is the type of move that the VIX is capable of.
As the VIX was jumping, the S & P topped out at 2,099.30 and dropped to a low of 2,072.29 in 4 1/2 hours.
The question now is how can we tell if this is the start of a serious pullback?
The answer lies with the VIX.? If the VIX closes ABOVE 14.06 today, that should tell us.
There are a few companies reporting last night that should open with massive gaps.?
Amazon, for one, which is up almost $75.? And LNKD, which is up almost $10.
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 *
15.63 should still be resistance for the VIX.? However, watch how the VIX reacts around the 14.06 level.
A close above that level and the objective should be to 18.75.
13.28 should continue to be minor 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
Minor resistance is at 2,082.? 2,074 should be a minor support area.
2,062.50 should be major support for the S & P 500.
To move to 2,000, the S & P will need two closes under 2,046.88.
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 yesterday just 3 cents above the 106.25 level, which I mentioned should be the objective.
Two closes under 105.46 and the QQQ should drop to 103.? But, look for support around that level.
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
A close today above 128.91 and the TLT should retest the 131 level.
Support should be at 128.13.
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 is almost at the 121.88 level.? 121.88 should be a critical level for the GLD.? If it sells off against that level, it should drop fast.
If the GLD gets through 121.88, 125 should be hit.
Lower levels should continue to act as support.
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
The XLE bounced off the 68.75 level yesterday.
Lower levels should still act as support.? The ultimate objective is to the 75? – 78 area.
Apple:
Major levels for Apple are 106.25, 100, 93.75, and 87.50.
$96.88 is the key short term level to watch.? Two closes under $96.88 and Apple could drop to $91 or $88.? Yesterday was the first close under $96.88, so a close today under $96.88 and the downside objective is to $90.
Also, 93.75 is a major level for Apple.? Two closes under that level and $75 would be the objective.
I read yesterday that Carl Icahn sold his entire stake in Apple, citing the slow down in China sales.
Watch list:
Bullish Stocks: LMT, BDX, RTN, LGND, JNJ, EW, CVX, ABMN, BABA, CRL, MDT, ALB, CNI
Bearish Stocks: CMG, BWLD, PRGO, MNST, VRSK, SWKS, LB, FL, AKAM, CAKE, DKS, QRVO
Be sure to check earnings release dates.
