March 15, 2016 - MDT Pro Tips A.M.
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Short March 18th - $15.50 call @ $.37
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With the FOMC Meeting and press conference tomorrow, the most likely scenario is another contraction ahead of the meeting.
Having said that, the markets are all selling off before the open.
However, the S & P 500 did close at 2,019.64 or about four points above the 2,015.62 level.? This would mean that the active objective for the S & P is now 2,062.50.
I would expect support to come in.? The most likely place will be around the 2,000 level. However, there is a short term support level at 2,007.80, which could also offer some support.
If the 2,000 does get violated, I do not see the S & P breaking under 1,984.? That should be a major support level.
As for the VIX, it did reverse to the upside and closed at 16.92 yesterday.? This is just under the 17.19 resistance level.
Watch where the VIX opens today.? If it opens above 17.19, look for a move back up to 18.75.
If 18.75 holds as resistance, expect the markets to head up.
Here are the key levels for the markets.
?
VIX:
Major level - 25.00
Minor level - 23.44
Minor level - 21.88
Minor level - 20.31
Major level - 18.75
Minor level - 17.19 *
Minor level - 14.06
Major level - 12.50
Because the VIX closed under 16.19 yesterday, I am still biased for a move lower.
However, 15.63 should be a support level and a difficult level to break under.? The 18.75 level should act as resistance.?
S & P 500 Cash Index:?
Major level - 2,062.50
Minor level - 2,046.88
Minor level - 2,015.62 *
Major level - 2,000.00
Minor level - 1,984.38 *
Minor level - 1,953.12
Major level - 1,937.50
Minor level - 1,921.88
Minor level - 1,890.62
Major level - 1,875.00
2,062.50 is now the active objective for the S & P.? For that to change, the S & P 500 would need two closes under 1,984.38.?
Lower levels should act as support. Namely, 2,000 and 1,984.
Short term 60 minute chart is in an uptrend, so I do expect a rally after this pullback.
Nasd 100 (QQQ):?
Major level - 112.50
Minor level - 111.71
Minor level - 107.03 *
Major level - 106.25 *
Minor level - 105.46
Minor level - 103.91
Major level - 103.13
Minor level - 102.35
Minor level - 100.78
Major level - 100.00
The QQQ is trading right around the 106.25 level.? Look for support at 105.46 and 104.
At this point, the QQQ will need two closes above 107.03 to move up to 112.50.
Lower levels should act as support.? The QQQ could drop to 100 and the trend would still be considered bullish.
Like the S & P 500, the QQQ is in an uptrend on the 60 minute chart.? So, I do expect another rally after it firms up.
TLT:?
Minor level - 132.03
Major level - 131.25
Minor level - 130.46
Minor level - 128.91
Major level - 128.13 *
Minor level - 127.34
Minor level - 125.78
Major level - 125.00
Of any instrument that has the potential to move tomorrow, the TLT probably has the most.
It closed just under the 128.13 level again.? However, it has not had two closes under 127.34.? If it reclaims the 128.13 level, look for that level to act as support.? It should open above 128.13.
GLD:
Major level - 125.00
Major level - 121.88 *
Minor level - 121.10
Minor level - 119.53 *
Major level - 118.75 *
Minor level - 117.96
Minor level - 116.41
Major level - 115.63
If the GLD closes today under 117.96, look for a move down to 115.63.? At this point, 118.75 should act as resistance.
XLE:
Major level - 65.63
Minor level - 64.85
Minor level - 63.28 *
Major level - 62.50
Minor level - 61.72 *
Minor level - 60.16
Major level - 59.38
The next level to the upside is 63.28.? Two closes above 63.28 and the objective becomes 65.63.
Look for lower levels to act as support.
Apple:
Major levels for Apple are 112.50, 106.25, 100, 93.75, and 87.50.
The objective should be to 106.25.? 100 should act as support.
Watch list:
Bullish Stocks: ORLY, BCR, TFX, CB, JNJ, PM, MKC, EL, ALGN, D, TJX, FSLR, COR
Bearish Stocks: REGN, AMGN, JACK, ABCO, MD, AR, KFY
Be sure to check earnings release dates.