The S & P 500 ended up forming a narrow range doji bar on the daily chart yesterday.
?It opened at 2,057.55 and closed for the day at 2,058.69.
The range for the day was about 10 points.
This tells us to expect a range expansion.? With the average true range now just over 18 points, a move to the average would just about double yesterday's intra day move.
The question is a directional bias.? With a doji bar, you generally expect the price to move in the direction of the open and pre market, it appears that the markets are set to open higher.
Price action has been range bound for about three weeks now.
To me, there is still a bullish bias because the S & P 500 has not been able to close under the 2,046.88 level.? In fact, there were three days last week where the market traded under that level, only to manage to close above it by the end of the day.
Here are the key levels for the markets.
VIX:
Major level - 25.00
Minor level - 23.44
Minor level - 20.31
Major level - 18.75
Minor level - 17.19 *
Minor level - 15.63 *
Minor level - 14.06 *
Major level - 12.50
The VIX did close under 14.84 yesterday.? It closed at 14.57.? This should indicate that the VIX should test the 12.50 level.
14.06 and 13.28 should be minor support.? Resistance should now be at 14.84.
S & P 500 Cash Index:?
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
It looks like the S & P 500 should open above the 2,065.50 level this morning.? If that is the case, it should act as support.
The next key level to the upside is 2,078.12.? Two closes above that level and the objective becomes 2,125.
The 2,046.88 level should be strong 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 *
Minor level - 103.91
Major level - 103.13
The QQQ closed just under the 106.25 level yesterday.
And yesterday's low was 105.54, just eight cents above the 105.46 support level I mentioned yesterday.
Two closes above 107.03 and the QQQ should move up to 109.38.
The QQQ should try and reclaim the 106.25 level today.
TLT:?
Minor level - 132.03
Major level - 131.25 *
Minor level - 130.46
Minor level - 128.91 *
Major level - 128.13
Minor level - 127.35
Minor level - 125.78
Major level - 125.00
131.25 should still be the objective and the TLT was just short of it yesterday.
130.47 has been support and if it is violated, I would expect a move back to 128.91.
GLD:
Major level - 125.00
Minor level - 124.22
Minor level - 122.66
Major level - 121.88
Minor level - 121.10
Minor level - 119.53
Major level - 118.75
Minor level - 117.96
The GLD broke under the 121.88 level, closing at 120.65.? A close today under 121.88 and the GLD should drop to 118.
Major support should be at 115.63.
Getting close to a short term top.
XLE:
Minor level - 69.53
Major level - 68.75
Minor level - 67.96
Minor level - 66.41
Major level - 65.63 *
Minor level - 64.84 *
Minor level - 63.28
Major level - 62.50
If the XLE closes under 64.84 today, it should retest the 62.50 level.? 62.50 should be strong support at this point.
If the XLE reclaims 64.84 today, it should move higher.? If it can do that, I will be looking to add to the ETE position.
Apple:
Major levels for Apple are 106.25, 100, 93.75, and 87.50.
Apple is oversold.? If it reverses off of the 91 level, it could move up quickly.
It has moved into downtrends on it's shorter term charts.
Watch list:
Bullish Stocks: AMZN, LMT, BCR, STZ, LLL, BDX, RTN, VMC, JNJ, THS
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Bearish Stocks: TSLA, ANTM, SIG, ASML, GILD, RL, AGU, TGT
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Be sure to check earnings release dates.
