Yesterday, the markets continued to follow through to the downside in the morning, only to find support and rally to close at 2,077.99.
The low for the day was 2,050.37, within 4 points of the downside level of 2,046.88.
Quite frankly, I would have preferred to see the S & P close above the 2,078.12 level.? But, it did get close.
Having said that, the S & P 500 will still need two closes above the 2,078.12 level to confirm a move back up to 2,125.
As for the VIX, it peaked at 22.89 before dropping most of the day to close at 19.37.
That should mean that 18.75 should still act as support.
Tomorrow is triple witching day, so you can generally expect excess volatility as institutions unwind position.
And finally, there is one open position and that is the short $4.50 call on DNR.
It appears highly unlikely that the calls will be assigned, so leave the position alone.
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 did retest the 21.99 level, as expected and dropped from there.
At this point, look for resistance at 20.31, with the expectation the VIX will retest 18.75.
17.19 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.? Look for minor resistance at 2,093.80.? 2,101.60 is also a level to watch.
Intra day charts are weakening.
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 stopped 25 cents above the 106.25 level.
Minor support is still at 107.03.? 108.60 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
Objective of 137.50 hit.? Yesterday's high was 137.56.
If the TLT cannot clear 137.50, look for a pullback.
Most likely downside objective would be to 131.25.
Short term support is at 135.94 and 135.16.
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 did hit the 125 objective and sold off.
Minor support is at 120.31.
Is this the start of the pullback I have been expecting? Depending upon how the GLD closes tomorrow, should give us an indication.
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
The XLE hit the 65.63 objective, taking it out by 29 cents and promtly reversed to close at 66.65.
That is a key level, because if the XLE can close tomorrow above 66.41, it should move back up to the 69 area.
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 this level can hold, I would expect a move back up to 100.
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.
