October 3, 2016 - MDT Pro Tips A.M.

You should have been assigned on the short $14 call on P on Friday.? The other two short call positions
expired worthless.

Last week, the S & P 500 closed up slightly 3.58 points, to close at 2,168.27.

After closing down on Thursday 20.24 points, it recouped most of the sell off on Friday by closing 17.14 points to the upside.

When you consider that the range for the week was only 18.79 points, you can see how the market spent all week bouncing up and down.

The end result was an inside day for the S & P 500.

After an inside day, you expect an expansion.? Couple this with a range contraction and that too will help
to lead to an expansion.

The weekly average true range for the S & P 500 is 44 points and last week's range was less than half that.

Last week also saw a divergence between the VIX and the market.? Both closed to the upside.
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Support levels from last week's price bar should be in the 2,158 to 2,163 area.

The major market wide news event this week will be the non farm payroll this Friday at 8:30 AM EST.

Earnings releases are very slow as the next quarter begins next Monday with Alcoa reporting next Monday after the close.

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

The VIX got as high as 15.20 on Friday before moving down to close at 13.29.

With two closes above 13.28, the bias is for a? move back up to 15.63.

12.50 continues to offer strong support for the VIX.

The minor support levels to watch are 12.89 and 13.28.

Minor resistance should be at 14.45 and 14.84.

S & P 500 Cash Index ($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

We have had a number of closes above 2,140.62, which would mean that the objective should be to 2,187.50.

Minor support should be at 2,148.40 and 2,156.30.

2,179.70 should offer minor resistance.

Nasd 100 (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

The QQQ did take out the 118.75 level on Friday, however it closed just under it at 118.72.

To move up to 121.88, the QQQ will need two closes above 119.53.

To move lower, two closes under 117.97.

Minor support should be at 118.16.? 119.14 should offer minor resistance.

TLT:?

Major level - 140.63
Minor level - 139.85
Minor level - 138.28
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

The TLT pulled back Friday to close at 137.51.

To move higher, it will need two closes above 138.28.? To move down to 134.38, it will need two closes under 136.72.

Minor support is at 137.11.

GLD:

Major level - 131.25
Minor level - 130.46
Minor level - 128.91
Major level - 128.13
Minor level - 127.35 *
Minor level - 125.78 *
Major level - 125.00 *
Minor level - 124.22

A move down to 125 should still be the objective.

Minor support should be at 125.39.? 124.22 should be a tough level to break under.

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 is inching up the 71.88 objective.

71.09 is a minor resistance level.? 69.53 should offer support.

FXY:

Major level: 96.88
Major level: 96.09 *
Major level: 95.31
Major level: 94.53
Major level: 93.75
Major level: 92.97
Major level: 92.19

The FXY should drop no farther than 94.53.

Minor support is at 95.12 and 94.92.? Resistance at 95.51.

AAPL:

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

Apple continues to cling to the 112.50 level.

111.72 should offer minor support.

113.28 should be minor resistance.

Watch list:

Bullish Stocks
: PCLN, AMZN, ILMN, TAP, UNP, WDAY, CAT, EA, SWKS, QCOM, NVDA, APA, WDC, DNKN, STX, AZPN

Bearish Stocks:? AGN, GS, ALXN, ESRX, DIS, CELG, VFC, SBUX, WFC, BBBY, VRX, ACOR
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Be sure to check earnings release dates.