October 9, 2019 - MDT Pro Tips A.M.

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The selling resumed yesterday. For the day, the S & P 500 closed 45.73 points lower.

The day closed out at 2,893.06. The resistance levels suggest that if the S & P closes under 2,929.73 today that the market should drop to 2,812.

I have been writing about how the price had taken out the lower band on the 30 minute chart and that a retest was highly probable. So, this sell-off should really not come as a shock.

The S & P is heading back towards the lower band. With yesterday's sell-off, the S & P is testing the lower band.

The lower band now reads 2,872.

And as I said, there are two scenarios that can happen.

The first is that the price will take out the lower band again. And if it does, we expect another retest.

The second scenario is that the price will hold above the lower band. With this scenario, price holds above the lower band and a bottom is formed.

Should this happen, a rally to the midband is the next logical move. The midband is 2,970.

For the day, the S & P closed at 1% of the daily bar. This does suggest that yesterday's low should be violated before the high.

This suggests that the resistance level from yesterday's daily price bar is in the 2,906 to 2,909 area.

And now that price had dropped under the weekly support area, it should now be resistance. That level is around 2,904. Above that price is the 2,924 area.

Pre open, the S & P is trading about 24 points higher. This projects to an open around 2,917.

This would put the open above the daily resistance level. So, if the market does sell off, we would expect the 2,906 to 2,909 area to be support. Should that be the case, it would suggest the retest bottom is in.

Here are the Key Levels for the Markets:

$VIX:

Major level: 25.00
Minor level: 24.22
Minor level: 22.66
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

The VIX closed at 20.37 yesterday. The VIX took out the 18.75 level and managed to close above it.

The upper band on the 30 minute chart for the VIX is 21.52. With the pre open rally, the VIX should open lower.

21.10 should offer resistance.

SPX:

Minor level: 3,164.08
Major level: 3,125.00
Minor level: 3,085.95
Minor level: 3,007.85
Major level: 2,968.80
Minor level: 2,929.73 **
Minor level: 2,851.58
Major level: 2,812.50 <
Minor level: 2,773.45
Minor level: 2,695.35
Major level: 2,656.30

The S & P closed at 2,893.06. The S & P should open around 2,917. This suggests that the S & P will need to close above 2,929.73 today for the market to head higher.

If the market does pull back, look for support at the 2,905 level. If this level cannot hold, I would expect a further pullback.

2,872 is the lower band.

QQQ:

Major level: 196.88
Minor level: 196.10
Minor level: 194.53
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

The QQQ closed at 185.42. The QQQ will need to close above 185.94 to head higher.

If it can't, it should head lower.

187.50 should be resistance until it is violated. The lower band on the 30 minute chart is 183.

IWM:

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 **
Minor level: 145.31
Major level: 143.75

The IWM closed at 146.46. Like the S & P, the IWM should retest the lower band, which is 143.

The IWM will need to clear 148.44 to head higher. A close under this level and the IWM should drop lower.

TLT:

Major level: 150.00
Minor level: 148.44
Minor level: 145.31 **
Major level: 143.75 <
Minor level: 142.97
Minor level: 141.41
Major level: 140.63
Minor level: 139.85
Minor level: 138.28
Major level: 137.50
Minor level: 135.84

The TLT closed at 145.17. The TLT closed just under the minor 145.31 level.

144.53 should continue to offer minor support. Short term charts remain bullish. 142 should offer technical support.

GLD:

Major level: 150.00
Minor level: 148.44
Minor level: 145.31
Major level: 143.75
Minor level: 142.97
Minor level: 141.41 **
Major level: 140.63 <<
Minor level: 139.85
Minor level: 138.28
Major level: 137.50
Minor level: 136.72
Minor level: 135.16

The GLD closed at 141.92. The objective should be to 143.75.

The major 140.63 level should be support. And the minor 141.41 should offer support as well. And a close above it would suggest a move up to 143.

Watch the technical support level at 141.50. If the GLD can hold this level it should head higher.

XLE:

Minor level: 63.28
Major level: 62.50
Minor level: 61.72
Minor level: 60.16
Major level: 59.38
Minor level: 58.60
Minor level: 57.03
Major level: 56.25 <<
Minor level: 55.86
Minor level: 55.08
Major level: 54.69

The XLE closed at 55.90. At this point, the XLE will need two closes under 55.86 to head lower.

And the XLE will need to move above 56.25 to head higher. And two closes under 55.47 and the XLE should head lower.

AAPL:

Major level: 237.50
Minor level: 234.38
Minor level: 228.13
Major level: 225.00 <
Minor level: 221.88
Minor level: 215.63
Major level: 212.50
Minor level: 209.38
Minor level: 203.13
Major level: 200.00
Minor level: 196.88

Apple closed at 224.40. If Apple can move above 225, expect it to head higher.

The 221 area should continue to offer support.

Short term charts remain bullish.

WATCH LIST:

Bullish Stocks: AGN, EXPE, DLR, SPLK, EDU, WPC, PAYX, MTH, CMS, LEN, MDCO, TSM

Bearish Stocks: HUM, CLX, JAZZ, LLY, FANG, PLCE, BMRN, WUBA, KFY, AMTD, TDC, TLRY, ALKS

Be sure to check earnings release dates.