Friday, the S & P 500 closed almost 20 points to the downside.
However, for the week, the S & P was down 3.06.? And it closed below the open.
On the weekly charts, the price bar formed a shooting star, in which the the bar forms a long upper wick.? The wick is the
range from the high to the close, which was 24.48.
The range for the week was 30.59, so the range of the wick was 80% of the entire range for the week.?
The implication now is that 2,108 area should act as resistance.
As for the VIX, it shot up 26.43% for the week, closing at 17.03.
It was pointed out to me that the VIX had made a low of 12.72 during the overnight session.? However, during the daily sessions it only dropped to 13.28.
This implication may not seem that important, but quite frankly, it is, and I did not catch it.?
And after bottoming during the day session at 13.28, the VIX moved up all week to hit a high of 17.33.
At the same time, the S & P 500 topped at 2,120.55, within 5 points of our objective and dropped to a low of 2,089.96 in three days.
This Wednesday will be the Fed announcement regarding interest rates.
This will be closely watched and I suspect trading will be light until the announcement at 2:00 EST.
This earnings season is winding down and the next quarter begins on July 11th.
Pre open, the markets are trading to the downside.
The big announcement this morning is that Microsoft is acquiring LinkedIn for $194 per share.
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Here are the key levels for the markets.
VIX:
Minor level - 19.53
Major level - 18.75
Minor level - 17.96
Minor level - 17.19
Minor level - 16.41
Major level - 15.63 *
Minor level - 14.84
Minor level - 14.06 *
Minor level - 13.28
Major level - 12.50 *
Objective should be to 18.75.? Short term support at 16.41 and 15.63.
17.97 should act as resistance.
S & P 500 Cash Index:?
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 *
Minor level - 2,046.88
Minor level - 2,015.62
Major level - 2,000.00
2,062.50 should be the objective and strong support.
Minor support is at 2,093.40 and 2,078.10.
Key short term support is at 2,101.60 and 2,109.60.
Intra day charts are in uptrends, so expect a rally.
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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
Two closes under 108.60 and the QQQ should drop to 106.25.
108.20 is a minor support level.? Expect 109.77 to act as resistance.
TLT:?
Major level - 137.50
Minor level - 136.72
Minor level - 135.16 *
Major level - 134.38
Minor level - 133.60 *
Minor level - 132.03
Major level - 131.25
Minor level - 130.46
Resistance should be at 135.94.?? To move higher, it will need to clear that level.
Minor support should be at 133.59.
GLD:
Major level - 121.88 *
Minor level - 121.09 *
Minor level - 119.53
Major level - 118.75
Minor level - 117.96
Minor level - 116.41
Major level - 115.63
Minor level - 114.85
Minor level - 113.28
Major level - 112.50
121.88 should be the objective, and the GLD is just under it.? The GLD will need to clear 123.44 to move higher.
Support should be at 120.31 and 119.53.
XLE:
Major level - 71.88
Minor level - 71.09
Minor level - 69.53
Major level - 68.75 *
Minor level - 67.96
Minor level - 66.41 *
Major level - 65.63
Major level - 62.50
Minor support is at 66.41 and major support at 65.53.
Minor resistance is at 67.97.
Apple:
Major levels for Apple are 106.25, 100, 93.75, and 87.50.
103 should be a tough level to break through on the first attempt.
96.88 and 95.31 should be minor support.? Minor resistance at 98.44.?
Watch list:
Bullish Stocks: ULTA, BCR, BDX, LLL, AVGO, CLX, LH, NEE, ECL, TAP, HSY, DTE, CTXS, BURL
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Bearish Stocks:? CMG, BIIB, GS, ALXN, PANW, EXPE, CCL, DIS, HIG, MET, BEN, SHLX, MS, VRX
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Be sure to check earnings release dates.
