December 6, 2016 - MDT Pro Tips A.M.

The S & P 500 closed at 2,204.71, up 12.76 on the day.? After hitting a high of 2,209.42, the S & P managed to close above the 2,203 level.? Look for this price to offer support today.

2,218.80 could offer some resistance.? If the S & P 500 can clear this price, it paves the way for the move up to 2,250.? If 2,218.80 cannot be cleared on this drive, look for a pullback to around 2,195 before it tries to make another attempt.

With the short term intra day charts in uptrend formations, the momentum is clearly bullish for the S & P 500.

The laggard has been the NASD Composite.? And yesterday, it had the biggest move of the three major markets.? The NASD Composite was up 1.01%, as compared to .58% for the S & P 500 and .24% for the DOW.

Perhaps it is mean reversing and will begin to catch up with the other markets. Typically, I do not like to see divergences in the major markets. But, like the S & P 500,? the NASD Composite is bullish on it?s shorter term 60 minute chart.

Actually, the overall NASD Composite is stronger than the QQQ at the moment. However, yesterday, a number of the QQQ components had strong bullish reversals.

This includes GOOGL, FB, AMZN and PCLN. The QQQ closed at 116.60, .80 cents under the 117.40 resistance level from last week?s weekly price bar. This is a level to watch to see if the QQ can clear this price.

The VIX dropped 14.02% yesterday and closed at 12.14. This is under the major 12.50 level that we know is long term support.

At some point, the VIX will find support and push higher, resulting in a pullback for the markets.? I don?t see the VIX dropping under 9.38.

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

With a close under 12.11 today, the VIX should drop to 10.94. 12.50 should now be resistance.

Momentum still bearish, but almost at an all time low.

$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

2,203.10 should offer support.? Minor resistance at 2,207.? If 2,203 holds today, look for a move up to 2,218.

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

116.02 should offer minor support.? If the QQQ can close above 116.41 today, it should retest 118.75.

117.19 should offer resistance.

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

118.75 should offer support.? If it breaks under that level, it could retest 115.

122 should still be major resistance on a rally.

GLD: ?

Major level: 115.63
Minor level: 114.85
Minor level: 113.28
Major level: 112.50 *
Minor level: 111.72 **
Minor level: 110.16
Major level: 109.38
Major level: 106.25

With a close today under 111.72, the GLD should drop to 109. Resistance should be at 112.50.?? 110.55 could offer minor support.

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

The XLE is overbought short term and a pullback should be expected.? 76 is the resistance level, which happens to be the upper band on the 60 minute chart.

I would expect another rally after any short term profit taking.? The 74 area is the most likely price where the XLE would stall after some selling.

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 continues to hold just above the 84.77 level.? It shou
ld try and test 85.94, but I would expect it to fail there.? If that cannot hold, I would expect 87.50 to.

Any rally would be short lived.

AAPL:

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

A close today under 110.93 and Apple should test 106.? If Apple does drop to 106, it could be a great opportunity to get long.

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