December 5, 2016 - MDT Pro Tips A.M.

Last week ended with serious divergence between the S & P 500 and the NASD market. While the S & P 500 closed down slightly last week 21.40 points, the DOW actually ended the week closing to the upside 18.28 points.

The most damage was seen in the NASD markets.? The NASD Composite was off 143.27 points or 2.65%.

The QQQ was down a comparable amount.? For the week, it closed to the downside 3.10 points or 2.61%, just .04% better than the Composite.

Is this the end of the bull run?

I don?t think, but we have been on high alert since the VIX dropped back to it?s all time support level.? So, a bounce in the VIX, and conversely, a pullback in the markets is not unexpected.

The question is where should support be for the market?

The S & P 500 has already bounced off it?s support level of 2,187.50.? The question is will it hold?

This morning, the market appear set to open higher, so watch to see if 2,187.50 holds on a retest.

If this level cannot hold, the next support level, which is 2,172 should.

With the bearish weekly price action for the QQQ, I would expect resistance for the QQQ to be around 117.40.? At least that is a level to watch to see if the QQQ can get through.

There are not a lot of major news releases this week that can move the markets in a meaningful manner.? And earnings are relatively slow.

Continue to monitor the levels for entry points.

Here are the Key Levels for the Markets:

$VIX:

Major level ? 14.06
Minor level ? 13.67
Minor level ? 12.89 **
Major level - 12.50
Minor level ? 12.11
Minor level ? 11.33
Major level ? 10.94

The VIX closed at 14.12 on Friday, just above the 14.06 level.?? I would expect resistance at 15.63.

The minor 14.84 level could offer resistance.? 13.67 should offer support.

$SPX:

Major level - 2,250.00
Minor level - 2,234.38
Minor level - 2,203.12 * <
Major level - 2,187.50 *
Minor level - 2,171.88
Minor level - 2,140.62
Major level - 2,125.00
Minor level - 2,109.38
Minor level - 2,078.12
Major level - 2,062.50

Most likely, the 2,187.50 level, should be tested today.? It should offer support.? If it doesn?t, look for 2,179.70 to be strong support.? 2,000 could offer resistance.

QQQ:

Major level - 121.88
Minor level - 121.10
Minor level - 119.53 *
Major level - 118.75 *
Minor level - 117.97 *
Minor level - 116.41
Major level - 115.63
Minor level - 114.84
Minor level - 113.28
Major level - 112.50

114.84 should offer minor support.? If the QQQ breaks under that level, expect is to head lower.

117.19 should offer resistance.? If the QQQ can hold above 115.63, expect a bounce.

TLT:

Major level ? 125.00
Minor level ? 124.22
Minor level ? 122.66
Major level ? 121.88
Minor level ? 121.09
Minor level ? 119.53 **
Major level ? 118.75 **
Minor level -? 117.96

The TLT bounced Friday and closed at 119.60.? A close today above 119.63 and the TLT should retest 121.88.

122 should be major resistance on a rally.

GLD:?

Minor level ? 117.97
Minor level -? 116.41
Major level ? 115.63 *
Minor level ? 114.85
Minor level ? 113.28
Major level ? 112.50 *
Major level ? 109.38

The GLD bounced up Friday and closed at 112.14.? 112.50 should be resistance, however, the GLD could move up to 115.60 before selling off.

Two closes under 109.38 and the GLD could drop to 100 to 103.

107.81 should be minor support and 111.72 resistance.

XLE:

Minor level ? 75.78
Major level - 75.00
Minor level - 74.22 *
Minor level - 72.66
Major level - 71.88
Minor level - 71.10
Minor level - 69.53
Major level - 68.75

If the XLE can hold above 74.22, it should continue higher.

The next major level is 78.13.? To move up to that level, the XLE will need two closes above 75.78.? Support continues at lower levels.

FXY:

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 above 84.77 Friday.? A close today above 84.77 and the FXY should test 85.94.

85.94 should be resistance,? If that cannot
hold expect 87.50 to.

AAPL:

Major levels for Apple are 118.75, 115.63, 112.50, 106.25, 100, 93.75, and 87.50.

107.81 should offer minor support.? If that cannot hold, I would expect 106 to. 108.59 is a minor level to watch.? If Apple breaks under it, look for a move down to 106.

WATCH LIST:

Bullish Stocks: LMT, GS, FDX, GD, BA, RTN, AET, CMI, PSX, SLB, JPM, APA, WDC, CLR, NBL

Bearish Stocks:? AGN, PANW, JAZZ, ATHN, CRM, CRL, UA, HBI

Be sure to check earnings release dates