October 4, 2016 - MDT Pro Tips A.M.

Yesterday, the markets pulled back with the S & P 500 closing to the downside 7.07 points, at 2,161.20.

Just like last week's weekly price bar, the daily bar yesterday contracted.? The range for the day was
9.64.? This was about half of the 19.65 average true range for the S & P 500.

At some point, we will see an expansion.

With a close at 2,161.20, the S & P 500 is right in the support area of last week's price bar, which I mentioned yesterday should be in the 2,158 to 2,163 area.

Most likely a move will occur on a breakout above 2,163 or a breakdown below 2,158.

With the major news this week being the release of the non farm payroll on Friday, trading maybe slow until then.

Also, we are at the end of earnings season, so there are very few companies reporting that could have marketwide influence.

Tomorrow at 12:00 EST is our webinar. If there is anything you would like me to address, please send me an email at davismdt@gmail.com.

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 has held above the 13.28 level, however, the 14.06 level should offer resistance.? Also, the minor 13.67 level should offer resistance.

12.50 should continue to offer strong support for the VIX.

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

Minor resistance is at 2,164.10. If the S & P 500 can close for two days above 2,164.10, it should help to confirm a move back to 2,187.50.

2,156.30 should be minor support.

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 continues to struggle to get through 118.75. It closed 20 cents under that level.

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 and 118.36.

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

With a break under 137.50, a retest of 134.38 could be expected.

Minor resistance is now at 137.11.? 135.94 should offer support.

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

The GLD closed just above the 125 level, at 125.32.? Pre market it appears that the GLD will break under that level.

124.22 is a minor level that should offer support. If it breaks under 124.22, expect lower lows.

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.

Also, the XLE is close to moving into an uptrend on the 60 minute chart.? If it does cross into an uptrend, expect higher highs.

Minor support is at 70.31.

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 closed right on a minor support level, which is 95.02.

94.74 is a level that should not be violated.? If it is, expect lower lows.

Major support should be at 94.53.

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, and closed just two cents above it.

Apple is very close to a buy.? As I mentioned a few days ago, if you got in, you maybe early, but you most
likely will not be wrong.

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
?
Be sure to check earnings release dates.