May 23, 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 attempted rally seems to have stalled out. Yesterday the S & P 500 closed to the downside 8.09 points, to close at 2,856.27.

But, this should not come as a shock due to the fact that the S & P 500 had confirmed a move lower. As you know, the active objective is back to a retest of the 2,812.50 level.

Yesterday's low stopped at 2,851.11. So the S & P 500 is about 40 points above the objective.

And with both the 30 and 60 minute charts in downtrends, the odds favor the move lower.

Pre open, the S & P 500 is trading about 28 points lower. Assuming this trading holds up until the open, it projects an open around 2,828.

This would put the S & P 500 within 16 points of the major 2,812.50 level.

The question will be if that level holds as support. If it can't, I would then expect a further drop to the next major level, which is 2,734.40.

Based on the projected open around 2,828, the market would open under the weekly support level. That area was 2,846 to 2,850. This now suggests that this area should now be resistance.

Another key price to watch for today is last week's low of 2,801.43. At this point, I would expect it to hold as support. However, if it is violated, it could indicate that this pullback may last a bit.

Finally, there is technical support at 2,897. Like last week's low, if this is violated, expect lower prices.
Watch the levels I mentioned above for possible support.

DECK and SPLK report this afternoon after the close.

It seems that the stock that everyone likes to bash at the moment is TSLA. As you know, it is one of the most heavily shorted stocks and the shorts will continue to pound the stock.

TSLA topped at 379.49 in December and has lost almost half its value. There is no question it is oversold.

Tomorrow I will review where I see this downslide could end.

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 14.75. This would imply that a close today under 14.85 and the VIX should drop to 12.50.

However, with a lower open projected on the S & P 500, the VIX should open higher. The question is at what level.

The key level on the upside is 16.41. It should be resistance, but if the VIX can clear this level, it would imply higher prices to follow and lower prices on the S & P 500.

The VIX is oversold short term, so a bounce is not unusual.

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

The S & P 500 closed virtually on the minor 2,856.40 line, I mentioned yesterday. It missed it by 13 cents.

With a projected open around 2,828, there are two levels that should be closely watched today.

On the upside is the 2,832 level. It should offer resistance. And on the downside, watch the 2,807 level.

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 181.02. The QQQ broke under the major 181.25 support level.

Watch the 179.69 level today. With two closes under this level, the QQQ should drop to 175.

181.25 should now be resistance.

178 is the lower band on both short term 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 152.53. Biased for a move to 150, which should offer support.

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

The 151 area 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 126.25. The high came to within 23 cents of the 126.56 level.

Watch to see if this level is cleared today.

Minor resistance is at 127.34.

Short term charts still remain strongly bullish. And technical support is at 126 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< < HIT
Minor level: 119.92
Minor level: 119.14
Major level: 118.75

The GLD closed at 120.24. The GLD did hit the major 120.31 level.

119.53 should offer support, but if it is violated, look for lower prices to follow.

The 30 and 60 minute charts have both crossed back into downtrends. This now suggests momentum has shifted to the downside.

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 63.52. Will biased for a run up to 65.63. But, the XLE will most likely test the 62.50 level first.

If this level is broken, I would expect lower prices.

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 182.78. Apple broke under the 200 ema which is now 185.43. With this break, Apple is looking very weak.

This area should be resistance. 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.