The sell off continued yesterday, with the S & P 500 closing 17.01 points to the downside.? The market closed at 2,079.06.
The downside objective should be to 2,062.50 and the market is within 15 points of it.
If 2,062.50 cannot hold as support, I suspect a move down to 2,000 would be the next objective. 2,000 should be strong support.
The VIX has made a strong move up these past two days. Yesterday, it was up just over 23% and 3.94 points.
If you do trade volatility, this again demonstrates how quickly the VIX can move.? The timing of the move is the difficult
aspect to understand.
The last time the VIX stalled at 12.50, it moved up 4.27 points.
This move stopped at 12.72 and has already moved over 8 points or 65%.
The question now is will the Fed Announcement tomorrow on interest rates help to turn this market?
There is no doubt that fear has entered the markets and uncertainty is a major concern ahead of the news.
Tomorrow is our webinar at 12:00 EST.? I hope to see you on the webinar.
Pre open, the markets are trading to the downside again.
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Here are the key levels for the markets.
VIX:
Major level - 25.00
Minor level - 24.21
Minor level - 22.66
Major level - 21.88
Minor level - 21.09
Minor level - 19.53
Major level - 18.75
Minor level - 17.96
Minor level - 16.41
Major level - 15.63
Major level - 12.50
The VIX took out the 18.75 objective.? At this point, the 21.88 level is the key short term level.?? If the VIX gets through that level, the next level is 25.
Short term support is at 20.31.
23.44 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.? If the S & P breaks under that level, look for support at 2,046.88.? To initiate a long, watch for the VIX to reverse to the downside.
Minor support is at 2,093.40 and 2,078.10.
2,070.30 is a short term support level.
Intra day charts still remain in uptrends.
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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
The QQQ closed at 107.63 yesterday.? It was the first close under 108.60, so if the QQQ closes under that level today, it should drop to 106.25.
107.03 is short term support level.? Resistance at 108.59.
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
The TLT closed at 135.38, just .56 under the 135.94 resistance level.??? The TLT will have to clear this level to move up to 137.50, which should be the objective.
Technically, the TLT is overbought.
Short term support should be at 134.38.
GLD:
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
The GLD took out the 121.88 objective yesterday, closing at 122.64.
Two closes above 122.66 and the objective now becomes 125. Minor resistance is at 123.44.
Support should be at 122.66 and 121.88.
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
Objective should be down to 65.63.
Minor support is at 66.41 and major support at 65.53.
Minor resistance is at 67.97 and 67.19.
Apple:
Major levels for Apple are 106.25, 100, 93.75, and 87.50.
A close today under 98.43 and Apple should drop to the 93.75 level.
95.31 should be a minor support level.? Minor resistance at 98.44.?
Watch list:
Bullish Stocks: BCR, RTN, BDX, JNJ, LLL, WYNN, 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.
