August 15, 2017 - MDT Pro Tips A.M.

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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We certainly got our answer about whether the down to up volume reading of 6.68 had the ability to turn the markets.

But, I think it helps that the last pivot low stopped exactly on the major 2,437.50 level. Actually, as I mentioned yesterday, it stalled on that line for two days.

This market is like the song ... "What a difference a day makes".

With fears of an disaster subsiding, or the perception of it subsiding, the market rallied strongly to close at 2,465.84.

For the day, it closed 24.52 points to the upside. The range for the day was only 13.26 points due to the bullish gap open.

And the VIX collapsed, closing 20.5% to the downside, at 12.33.

Yesterday's close was significant because it was it was above the 2,453.12 level. And the market got above the weekly resistance level of 2,469 to 2,464.

A close today above 2,453 would imply a move up to 2,500. The 2,484.40 level has offered strong resistance to date, so that maybe an area to watch closely on a further move higher.

The major market wide news this week will be the release of the FOMC meetings on Wednesday.

Earnings continue this week and will be closely followed.

Continue to follow the resistance levels.

Here are the Key Levels for the Markets:

$VIX:

Major level: 18.75
Minor level: 17.97
Minor level: 16.41
Major level: 15.63
Minor level: 14.84
Minor level: 13.28
Major level: 12.50
Minor level: 11.72
Minor level: 10.16 **
Major level: 9.38 <

The VIX sold off and closed just under the major 12.50 level. It closed at 12.33.

At this point, 14.06 should offer resistance.

10.94 is the minor level on the downside. Two closes under 10.94 and the VIX should drop to 8. (And possibly to 6.25, which would be historic.)

$SPX:

Major level: 2,500.00
Minor level: 2,484.38
Minor level: 2,453.12 **
Major level: 2,437.50 <
Minor level: 2,421.88
Minor level: 2,390.62
Major level: 2,375.50
Minor level: 2,359.38
Minor level: 2,328.12
Major level: 2,312.50

The 2,453 level should offer strong support. As I mentioned, a close above 2,453.12 and the objective should be to 2,500.

2,484 could offer resistance. Minor levels are 2,460.90 and 2,468.80.

QQQ:

Major level: 150.00
Minor level: 148.44
Minor level: 145.31
Major level: 143.75 <
Minor level: 142.18
Minor level: 139.06
Major level: 137.50
Minor level: 135.94
Minor level: 132.81

The QQQ closed back above 143.75. It closed at 143.93.

144.53 could offer minor resistance. If the QQQ can clear this level, expect the QQQ to head higher.

142.97 should offer support on the downside.

IWM:

Minor level: 144.53
Major level: 143.75
Minor level: 142.97
Minor level: 141.41
Major level: 140.63
Minor level: 139.85
Minor level: 138.28 **
Major level: 137.50 <
Minor level: 136.72
Minor level: 135.15
Major level: 134.37

Like the other major markets, the IWM jumped up and closed at 138.54.

A close today above 138.28 and the IWM should move up to 140.63.

137.50 should be major support.

TLT:

Major level: 128.13
Minor level: 127.74
Minor level: 126.95
Major level: 126.56 <
Minor level: 126.17 **
Minor level: 125.39
Major level: 125.00
Minor level: 124.61
Minor level: 123.83

Watch the 126.17 level today. If the TLT closes under that level, it should drop to 125.

I would expect 125 to be support. And 125.39 could offer minor support.

GLD:

Major level: 125.00
Minor level: 124.22
Minor level: 122.66 **
Major level: 121.88 <<
Minor level: 120.32
Minor level: 119.53
Major level: 118.75
Minor level: 117.97

The GLD closed at 121.92.

123.44 is a minor resistance level. A break above that level and you can expect the GLD to continue higher. 121.09 should be support.

XLE:

Minor level: 69.53
Major level: 68.75
Minor level: 67.97
Minor level: 66.41
Major level: 65.63
Minor level: 64.85 <
Minor level: 63.28
Major level: 62.50 <<
Minor level: 61.72

62.50 should be the objective for the XLE.

63.67 is a minor support level. A break under 63.67 and the XLE should continue to the 62.50 level. 64.06 is now minor resistance.

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 87.70.

87.50 should now be strong support. And minor support should be at 87.11. 88.28 is minor resistance.

AAPL:

Major levels for Apple are 162.50, 159.38, 156.25, 153.13, and 150.

Apple is within reach of the 162 objective. 158.59 should offer minor support. And minor resistance is at 160.94.

WATCH LIST:

Bullish Stocks: LMT, RTN, ALGN, COL, KITE, EL,DG, WEC, AZPN, GRUB, ERJ, MFA

Bearish Stocks: PANW, IBM, FLT, PANW, BWLD, CLB, VRSK, ESRX, WES, PAYX, AKAM, SGEN, LB, FLR

Be sure to check earnings release dates.