May 22, 2019 - MDT Pro Tips A.M.

CURRENT POSITIONS:

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The week seems to be shaping up as I wrote about on Monday. Early weakness, with strength to follow.

And yesterday helped to support that with a move higher.

For the day, the S & P 500 closed 24.13 points higher. It ended the day closing at 2,864.36.

But, the S & P 500 could not close above 2,871.08, which does suggest that we may see more selling pressure.

We may see that because of the strong bullish gap yesterday. But, if the market does sell off, I would expect support at Monday's high, which was 2,853.86.

The other support level to watch for today is the 2,859 to 2,861 area.

Based on the bullish gap yesterday, I suggested the market should move up to the 2,871.08 level. The run actually fell short of the price line, hitting a high of 2,868.88.

This does suggest that a drop to 2,812 is possible.

But, there are a few support levels just under the market, including technical support at 2,855, in addition to the levels I mentioned above.

And there is still support from last week's weekly bar in the 2,846 to 2,850 area.

The 30 minute and 60 minute charts remain in bearish formations. And technical resistance is in the 2,892 area.

Pre open, the S & P 500 is trading to the downside about 13 points. Watch the levels I mentioned above for possible support.

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 14.94. The VIX closed under the major 15.63 level.

At this point, watch the minor 14.06 level. If the VIX drops under 14.06, it should continue lower.

And on the upside, 17.19 should be resistance.

SPX:

Major level: 2,968.80
Minor level: 2,949.25
Minor level: 2,910.15
Major level: 2,890.60
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

With a close under the minor 2,871.08 level, the logical move should be to 2,812.50.

But 2,832 should be a minor support level. Watch how the market reacts at this level.

2,856.40 is a minor level and the S & P 500 should open just below it. Watch this level today to see if it offers resistance.

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 181.83. If the QQQ can close above 182.81 today, it should move up to 187.50.

181.25 should still be major support.

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

The QQQ will need two closes under the minor 179.69 level to move lower.

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 153.82. The minor 151.56 level should offer support.

153.13 is also a minor support level. On the upside, the S & P 500 will need to clear 153.91 to move higher.

151 should offer technical support.

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 125.53. 125.39 is a minor support level. If the TLT can hold this level, it should move higher.

Short term charts still remain strongly bullish. And technical support is at 124.50 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 120.36. 120.31 should still be minor support. Watch to see if the GLD can hold this level. If it can't, it should head lower.

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. But, the GLD is trading under the midband and it should offer resistance. The midband is in the 121 area.

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 64.52. With a second close above 63.28, the XLE should run up to 65.63.

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

I don't see 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 186.60. Apple is still trading between the 200 ema and the midband. The 200 ema is 185.45 and the 253-day average is 189.93.

Resistance is at 187.50. I am biased for a move down to 175.

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.