November 1, 2016 - MDT Pro Tips A.M.

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October closed out by closing out the day .26 points to the downside, at 2,126.15.? That means for the month, the S & P 500 formed a bearish candle.

Based on the monthly price bar for the S & P 500, the 2,142 to 2,145 area should act as resistance.? This is just above the 2,140.62 resistance level and a level I would expect will be retested.

The market will not turn to the upside until the VIX fails and begins to head back down.

With yesterday?s close at 17.06, today will tell us if the VIX does run up to 18.75. If the VIX closes above 16.41 today, that should tell us the VIX will head higher. Expect 16.41 to be tested.

Friday we will get the Non Farm Payroll which will be closely watched by investors to help give clarity if a rate hike is coming next month.

The S & P 500 is trading just above the major 2,125 level.? The market should bounce here, but if it does break under that level, I would expect a move down to 2,109.

Continue to monitor the levels for entry points.

Here are the Key Levels for the Markets:

$VIX:

Major level - 18.75 *
Minor level - 17.96
Minor level - 16.41 *
Major level - 15.63 *
Minor level - 14.85
Minor level - 13.28
Major level - 12.50
Minor level - 11.72

As I mentioned, a close today above 16.41 and the VIX should move up to 18.75.

Short term levels for the VIX at 15.63 and 16.41.? On the upper level, I would not expect the VIX to take out 20.31.

$SPX:

Major level - 2,250.00
Minor level - 2,234.38
Minor level - 2,203.12
Major level - 2,187.50
Minor level - 2,171.88
Minor level - 2,140.62 *
Major level - 2,125.00 *
Minor level - 2,109.38
Minor level - 2,078.12
Major level - 2,062.50

The S & P 500 did hit the 2,125 objective.? Minor short term support levels are at 2,121.21 and 2,117.20.? I would not expect a break under 2,117.20.? If 2,117.20 is violated, I would expect a move to 2,009.

On the upside, 2,132.80 could offer resistance.

QQQ:?

Major level - 121.88
Minor level - 121.10
Minor level - 119.53
Major level - 118.75 *
Minor level - 117.97 *
Minor level - 116.41
Major level - 115.63
Minor level - 114.84
Minor level - 113.28
Major level - 112.50

116.80 is the key short term level.? If the QQQ breaks under 116.80, it should continue to 115.63.

If the QQQ can find support at 115.63, I would expect a reversal to the upside.

TLT:?

Major level - 137.50
Minor level - 136.72
Minor level - 135.16
Major level - 134.38
Minor level - 133.60
Minor level - 132.03 *
Major level - 131.25
Minor level ? 130.46
Minor level ? 128.91
Major level ? 128.13

The TLT bounced and closed at 131.25, exactly on the major support level. The TLT would have to move up to 134.38 on this drive to confirm that the pullback is over.

Minor support should be at 130.86.

Two closes above 132.03 and a move up to 134.38 would be expected.

GLD:

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 ? 117.97

The GLD closed above 121.88 yesterday. It closed at 121.94. 121.10 should now be support. To move higher, the GLD will need two closes above 122.66. If it can do that, the objective becomes 125.

125 should be resistance on a retest.

XLE:

Major level - 75.00
Minor level - 74.22
Minor level - 72.66
Major level - 71.88
Minor level - 71.10
Minor level - 69.53 *
Major level - 68.75 *
Minor level - 67.96
Minor level - 66.41
Major level - 65.63

The XLE closed just under the 68.75 level, at 68.62.? This level should be support. A reversal to the upside today would confirm that.

Also, 68.36 should be minor support.

FXY:

Major level: 96.88
Minor level: 96.49
Minor level: 95.70
Major level: 95.31
Minor level: 94.92
Minor level: 94.14
Major level: 93.75 *
Minor level: 93.36
Minor level: 92.58 *
Major level: 92.19
Minor level: 91.80
Minor level: 91.02
Major level: 90.63

The FXY closed just under the major 92.19 level. It closed at 92.03. The minor 92.58 level should be resistance now.? 91.41 should be support.

AAPL:

Major levels for Apple are 118.75, 115.63, 112.50, 106.25, 100, 93.75, and 87.50.

Apple is trading just above the 112.50 level.? It closed at 113.54 yesterday.? 113.28 is a minor support level and if Apple reverses to the upside off that price, expect a quick move up.

WATCH LIST:

Bullish Stocks: NOC, GS, BA, MA, NVDA, AKAM, QCOM, MSFT,

Bearish Stocks:? CMG, REGN, AGN, CI, KMB, VRTX, ESRX, RARE

Be sure to check earnings release dates