The long awaited Fed meeting culminated with the Fed standing pat on interest rates.
The market had been moving up nicely prior to the announcement and proceeded to collapse off the news.
The S & P 500 hit a high of 2,085 at 2:00 and dropped to a low of just above 2,070.?
Had you been on the webinar yesterday, you would have known that the odds favored a push down.
This was anticipated because the VIX had managed to trade above the upper band on the 60 minute chart and I explained that a retest of the upper band was highly probable.
As you know, as the VIX drops, the markets should rise. And vice versa.
Once the VIX broke back under the upper band, it stopped at 18.63.? This was just 12 cents under the support level.? And a level we have identified that should be support.
The markets are set to open to the downside and follow through on the late day sell off.
At this point, a test of 2,062.50 should be the objective.
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 closed at 20.31 yesterday.? 21.88 should be retested.? The next major level is 22.66, because if the VIX closes? above that level for two days, it should move up to 25.
23.44 is a short term resistance level.
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 still be support and the downside objective.
2,070.30 is a short term support level.? And 2,054.70 is a minor short term resistance level.
To move down to 2,000, the S & P will need two closes under 2,046.88.
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 objective should be to a retest of 106.25.
Minor support is at 107.03.? 108.20 should be minor 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
A close today above 135.16 and the the TLT should move up to 137.50.
Short term support should be at 134.38.
Short term resistance is at 136.13.
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
Objective should be to 125.? 126.56 should be minor resistance.
Support should be at 121.34 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 66.02.
Minor resistance is at 67.58.
Apple:
Major levels for Apple are 106.25, 100, 93.75, and 87.50.
Apple is still holding above the minor 96.88 support level.
If Apple breaks under that level, look for a move down to 93.75.
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.
