The market continued to bounce around ahead of the Brexit vote.
Yesterday's range did pick up and was 15.35 points. However, it is still below the average true range, which is now 17.85.
Investors are in a holding pattern waiting for the outcome of the vote in England.
The VIX popped up 2.60 or 14.56, as you would expect as fear sets in.
This is not unusual and was expected based on the fact that the VIX managed to trade above it's upper band on the 60 minute chart.
I mentioned a few days ago that a retest of the upper band should be expected.
With an almost 15% jump in the VIX, the S & P 500 only closed 3.45 points to the downside.? This looks bullish to me because you expect a larger drop in the markets, based on such a jump in the VIX.
I suspect if Great Britian does pull out, you will see the VIX jump significantly higher.
Expect excess volatility tomorrow as the results are known.
Pre open, the markets are set to open to the upside.
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
With the VIX spiking up yesterday to a high of 21.22, the 21.88 is the key level at the moment.? Watch where the VIX opens today.
If it opens under 21.88, look for that level to act as reistance.
Support is at 18.75.
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
2,125 is still the upside objective.? The S & P 500 closed at 2,085.45, just below the minor 2,085.90 minor support level.
Look for 2,085.90 to act as support.
2,101.60 should also be a key level.? If the S & P can get above it, look for it to act as support.
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
107.03 continues to act as support.? Upside objective should be to 109.38.
Minor support is at 107.03 and 106.64.? Minor resistance is 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
Objective should still be down to 131.25, which should also be support.
Resistance should be at 134.38.
Minor support is at 132.81.
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 close under 121.09 yesterday.? The objective should be down to 118.75.
121.88 should be resistance.? 120.31 should offer some support.
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 is almost back to the objective of 68.75.
Minor support is at 67.97 and 67.58.
68.36 should be minor resistance.
Apple:
Major levels for Apple are 106.25, 100, 93.75, and 87.50.
Look for a bounce back up to 100.? 95.31 should be support. Stop at 95.31.
Watch list:
Bullish Stocks: MMM, CLX, NEE, WYNN, DLR, HSY, DTE, DLTR, XOM, GOV, LL, LOCK, EGHT
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Bearish Stocks:? CMG, BIIB, TSLA, AMG, AMGN, GD, UHS, PANW, ALXN, EXPE, DEO, CELG, GILD, TSO, LLY, R
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Be sure to check earnings release dates.
