May 21, 2019 - MDT Pro Tips A.M.

CURRENT POSITIONS:

GOGO Long at $19.93
Total Premium Collected $1.95

ASNA Long at $14.20
Total Premium Collected $0.75

DUST Long $4.50
Total Premium Collected $0.70

SNAP Long at $14.54
Total Premium Collected - $2.10

RRC Long at $11.85
Total Premium Collected $0.70
RRC Long at $9.20

RIG Long at $8.81
Premium Collected - $1.45

FEYE Long at $17.18
Total Premium Collected $0.80

AMC Long at $16.16
Total Premium Collected $0.35

The week began as I suggested yesterday. That is weakness early to most likely be followed with buying coming into the market.

The S & P 500 ended up closing 19.30 points lower. For the day, the market closed at 2,840.23.

At this point, a close under 2,871.08 today would suggest that the S & P 500 should retest the major 2,812.50 level again.

The daily bar closed at 40% of the daily bar. This does give a slight nod to price breaking under yesterday's low before the high.

The key intraday resistance levels are from 2,842 to 2,891.

And the close should also be a level to watch.

The market is getting a bid pre-open. As I write this, the S & P 500 is trading almost 19 points higher. Of course, there is still about 2 hours before the open, so this could change. But, we should open higher.

Assuming this trading does hold into the close, the market should open above yesterday's high of 2,853.86. This would suggest that if the market pulls back, the close should be support.

Assuming the market moves higher, I would expect it to run to 2,871.08. Should the market close above that level, it would void the bearish scenario.

A minor support level, assuming an open about 19 points higher would be the 2,851 area.

The resistance level from the weekly price bar is in the 2,846 to 2,850 area. So, there should be strong support in this area.

Earnings do continue this week. Both DECK and SPLK report Thursday after the close.

Here are the Key Levels for the Markets:

$VIX:

Major level: 21.88 <
Minor level: 21.10
Minor level: 19.53
Major level: 18.75
Minor level: 17.97
Minor level: 16.41 **
Major level: 15.63 <
Minor level: 14.85 **
Minor level: 13.28
Major level: 12.50
Minor level: 11.72

The VIX closed at 16.31. It closed 10 cents under the 16.41 level. To move higher, the VIX would need two closes above 16.41.

With a projected higher open, the VIX should open lower. This would suggest that resistance is at 17.19 and 16.41.

If the VIX can break under 15.63, it should continue lower.

Technical resistance is at 17.14.

SPX:

Major level: 2,968.80
Minor level: 2,949.25
Minor level: 2,910.15
Major level: 2,890.60 < Hit
Minor level: 2,871.08 **
Minor level: 2,832.03
Major level: 2,812.50
Minor level: 2,792.98
Minor level: 2,753.93
Major level: 2,734.40
Minor level: 2,714.88
Minor level: 2,675.83
Major level: 2,656.30

The S & P 500 will have to reclaim the 2,871 level today to void the bearish momentum.

I mentioned yesterday that 2,832 should be a minor support level and to watch how the market reacts at this level. As it turned out, the low for the day was 2,831.29.

2,856.40 is a minor level and the S & P 500 should open just above it.

Watch this level today.

QQQ:

Major level: 193.75
Minor level: 192.19
Minor level: 189.06
Major level: 187.50
Minor level: 185.94
Minor level: 182.81 **
Major level: 181.25
Minor level: 179.69 **
Minor level: 176.56
Major level: 175.00
Minor level: 173.44
Minor level: 170.31
Major level: 168.75
Minor level: 167.19

The QQQ closed at 179.95. The QQQ will need two closes under 179.69 to head lower.

181.25 should be major support. And the QQQ closed just under it. With a projected higher open, the QQQ should open above it.

177 is the lower band on both timeframes and should offer support.

IWM:

Major level: 168.75
Minor level: 167.19
Minor level: 164.06
Major level: 162.50
Minor level: 160.94
Minor level: 157.81 **
Major level: 156.25 <
Minor level: 154.69 **
Minor level: 151.56
Major level: 150.00
Minor level: 148.44

The IWM closed at 151.78. The IWM is dropping from stalling at the midband. The
midband is now 156.40

I am biased for another run to the midband because money flow is still positive. The question is will it clear it on this attempt?

The IWM has traded above and below the midband five times now.

151.56 should offer support and the IWM traded just under it.

TLT:

Major level: 128.13
Minor level: 127.74
Minor level: 126.95
Major level: 126.56
Minor level: 126.17 **
Minor level: 125.39
Major level: 125.00
Minor level: 124.61
Minor level: 123.83
Major level: 123.44
Minor level: 123.05

The TLT closed out at 125.73. The high came 126.38. This was within 20 cents of the 126.56 objective. If it clears this level, a run to 128.13 is possible. Watch to see if 125.39 holds as support.

125.39 is minor support.

Short term charts still remain strongly bullish. And technical support is at 124.40 area.

GLD:

Major level: 126.56
Minor level: 126.17
Minor level: 125.39
Major level: 125.00
Minor level: 124.22
Minor level: 122.66
Major level: 121.88
Minor level: 121.49
Minor level: 120.70
Major level: 120.31< <
Minor level: 119.92
Minor level: 119.14
Major level: 118.75

The GLD closed at 120.64. 120.31 should be support. Watch to see of the GLD can hold this level.

If the GLD has two closes above 120.70, it should test the 121.88 level.

Both the 30 and 60 minute charts are bullish, so momentum should be shifting to the upside.

XLE:

Major level: 71.88
Minor level: 71.10
Minor level: 69.53
Major level: 68.75
Minor level: 67.97
Minor level: 66.41
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 XLE closed at 63.78. The XLE continues to hold just above the 63.28 level. If it can hold this level, I would expect a run up to 65.63.

62.50 should be strong support. And 63.67 is a minor support level.

I don't expect the XLE breaking the 62.50 level, but if it does, it should continue lower.

AAPL:

Major level: 212.50
Minor level: 209.38
Minor level: 203.13
Major level: 200.00
Minor level: 196.88
Minor level: 190.63
Major level: 187.50
Minor level: 184.38 **
Minor level: 178.13
Major level: 175.00

Apple closed at 183.09. Apple is trading between the 200 ema and the midband. The 200 ema is 185.44 and the 253-day average is 189.92.

A close today under 184.38 implies a move down to 175.

Today's close should give a clue as to the next move for Apple.

WATCH LIST:

Bullish Stocks: SHOP, NOW, FLT, LLL, CTAS, WDAY, APD, MCD, HUBS, GPN, CB, RCL, WP, AXP

Bearish Stocks: TSLA, GS, AAPL, FDX, GD, NVDA, LEA, SPOT, BIDU, EOG, BUD, LOGM, ALB, ALNY, GRUB, SHAK, CLB, OXY

Be sure to check earnings release dates.