The markets shrugged off the Brexit vote last week with the S & P 500 closing 65.54 points to the upside.? This was a gain of 3.22%.
In fact, all major markets closed to the upside over 3%, with the QQQ leading the way with a 3.63% gain.
This started last Monday with the S & P 500 holding the previously identified support level of 2,000.? From that level, the S & P rallied back to within 23 points of the 2,125 level.
As for the VIX, it peaked at 26.72 before dropping all week to lose almost 43%.? It closed at 14.77.
This was the largest move of the year for the markets.
Based on the weekly reversal bar, the expectation is that the high for the week should be violated before the low.
Support provided from the weekly price bar for the S & P 500 should be around 2,067 and 2,050.
This week has two market wide events that can move the markets.
The first is the release of the Fed Meeting notes tomorrow. And the second is the Non Farm Payroll this Friday.
The release of the Non Farm Payroll was delayed due to the holiday.
Here are the key levels for the markets.
VIX:
Minor level - 22.66
Major level - 21.88
Minor level - 21.09
Minor level - 19.53
Major level - 18.75
Minor level - 17.96 *
Major level - 15.63 *
Minor level - 14.85 *
Minor level - 13.28
Major level - 12.50
The VIX closed back under 15.63 on Friday. It closed at 14.77.
14.77 is a key level because if the VIX closes under that level today, it would want to drop to 12.50.
17.19 and 18.85 should be resistance.? 14.06 should act as 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 level - 1,984.38
Minor level - 1,953.12
Major level - 1,937.50
The objective should be to the 2,125 level.
2,078.12 should be support.? If that does not hold, I would expect 2,062.50 to.
2,109.40 should be a resistance level.
The S & P 500 has made three runs at the 2,125 level.? If it breaks through it, it paves the way for a move up to 2,250.
Nasd 100 (QQQ):?
?
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
Minor level - 102.34
With a close of 108.08 on Friday, the upside objective becomes 109.38.
Minor levels are 107.03 and 106.25.
TLT:?
Major level - 143.75
Minor level - 142.96
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 - 135.16 *
Major level - 134.38
The TLT closed above the upper extreme bollinger band on Friday.? It closed at 140.57, just under the major 140.63 level.
To move higher, it will need two closes above 141.41.
143.75 should be a tough level to get through and should offer strong resistance.
Definitely overbought.
GLD:
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
Minor level - 124.22
To move higher, the GLD will need two closes above 128.91.? It closed Friday just under it, at 128.41.
The GLD is approaching the upper band on the daily chart.
Bullish % interest for the gold miner sector now reads 100%.
Not the time to be thinking long.
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 closed Friday 5 cents under the 68.75 level. The XLE will need two closes above 69.53 to move higher.
Minor support remains at 66.41 and 67.19.
Apple:
Major levels for Apple are 106.25, 100, 93.75, and 87.50.
Apple closed Friday above 95.31, so the objective should be back to 100.
100 should be resistance.? Minor resistance is at 98.44. 93.5 should be minor support.
Watch list:
Bullish Stocks: NTES, CASY, MMM, SYK, JNJ, CVX, CCI, DTE, POOL, XOM, ALGN, PNW, ETR, DGX
?
Bearish Stocks:? CMG, UHS, WBC, MA, RHT, WAB, RCL, NTRS, VLO, CCL, CAKE, CBG
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Be sure to check earnings release dates.
