The S & P 500 ended up closing to the upside yesterday just over 20 points, at 2,066.66.
The case for the bearish scenario and a continuation of the pullback was that Friday was the first close under 2,046.88.? A close yesterday under that level would have implied that the downside objective for the S & P was 2,000.
Instead, the S & P 500 opened at 2,046.53 and that was the low for the day. This was just 35 cents under the 2,046.88 confirming level.
This now tells us that the market is not ready to pullback.? In fact, to move lower, the S & P 500 will still need two closes under 2,046.88.
In addition, the S & P 500 was able to regain the 2,062.50 level and close at 2,066.66.
The next major level to the upside is 2,078.12 and if the S & P can close above that level for two days, it should try and make a run at 2,125.
The bearish scenario for the S & P is that the short term 30 minute and 60 minute charts are still in downtrending formations.
This means we should see some choppy action before a clear upmove gains traction.
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 has been having a lot of trouble clearing the 15.63 level.
It hit a high of 15.98 yesterday before selling off to close at 14.68.
13.28 has also been support level for the VIX and a level to watch.
Short term levels are 15.23, 14.84, 14.45, and 14.06.
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
The 2,062.50 level should now be support.? Also, 2,046.88 should act as support.
2,078.12 is the next minor level to the upside.
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 above the 106.25 yesterday.? Two closes above 107.03 and the objective becomes 109.38.
Minor support is at 105.86.
TLT:?
Major level - 132.81
Minor level - 132.42
Minor level - 132.03
Major level - 131.25 *
Minor level - 130.46
Minor level - 128.91 *
Major level - 128.13
The TLT closed back under 131.25 yesterday.? Support should be around 130.47.
If it can clear 132.81, it paves the way for a move up to the 138 area.
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 closed just under the 121.88 level.? To move lower, the GLD will need two closes under 121.10.
Minor support should be at 120.31 and 118.75.
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
Two closes above 66.41 and the XLE should try and make a run at 68.
The XLE continues to move closer to an uptrend on the daily chart.
65.63 should be support.
Apple:
Major levels for Apple are 106.25, 100, 93.75, and 87.50.
Apple got a nice bounce from it's oversold condition aided by the news that the Oracle of Omaha acquired a large stake in the company.
To move higher, Apple will need two closes above 95.31.
It has moved into downtrends on it's shorter term charts.
Watch list:
Bullish Stocks: AMZN, LMT, BCR, STZ, CLX, FB, NEE, RTN, ZBH, DPS, XOM
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Bearish Stocks: REGN, HUM, AMGN, ALXN, ANTM, PANW, AET, CSL, CELG,
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Be sure to check earnings release dates.
