September 26, 2016 - MDT Pro Tips A.M.

Short Sept 30th-$14 Call - (.26)

Friday saw profit taking come into the markets, with the S & P 500 closing to the downside 12.49 points, at 2,164.69.

However, for the week, the S & P closed to the upside 25.53 points.?

This would suggest weakness to open the week and pre open that is the case.? The S & P 500 futures are
set to open down 9.50 points this morning.

Support from last week's weekly price bar should be in the 2,154 to 2,157 area.

2,154 should be a level to watch.? If support holds at that level, I would expect a reversal to the upside to begin.

Economic news is quiet this week, as well as earnings.

We are winding down to the end of this earnings season, so the number of companies reporting are slowing down.

The next quarter begins on October 10th, with Alcoa reporting.

Perhaps the major news event this week is the first Presidential debate.? This should be closely followed.

The major negative for the markets is that the VIX is back to all time lows.? It closed under 12.50 Friday, at 12.29.

Continue to follow the levels.

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

With the VIX closing under 12.50, we need to see if the expected bounce happens.

The major level at the moment is 13.28.? Two closes above 13.28 and the VIX should move up to 15.63.

If the VIX opens above 12.50, it should act as support on a retest.

S & P 500 Cash Index:?

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

With a close under 2,171.90, I would expect that level to act as resistance. A close today under 2,170.90 and the objective should be to 2,125.

2,140.62 should offer support.? Also, 2,156.30 should be a strong level of support.

If the S & P 500 takes out the 2,193.81 prior high, it paves the way for the move up to 2,250.

The short term 60 minute chart is still in a downtrend. However, the 30 minute chart is very close to
crossing into an uptrend.

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

Since hitting the 118.75 objective, the QQQ sold off and closed at 118.33 on Friday.

Two closes under 117.97 and the objective is to 115.63. 115.63 should be a strong level of support.

The QQQ remains the strongest of the major markets.

The 116 area should be an area of strong support.

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 came within 6 cents of the 137.50 level, before closing at 136.82.

To move lower, the TLT will need two closes under 136.72.

Minor support is at 135.94.

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 at 127.65 on Friday.?

Two closes under 127.35 and the GLD should test 125.

If the GLD moves under 127.34, expect that level to offer resistance.? Minor support should be at 125.78.

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 at 67.64, just under the 67.96 level.? A close today under 67.96 and the XLE should test 65.63.

67.19 should be a short term support level.

The XLE did move into a downtrend on the 60 minute chart, so I do expect selling pressure.

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 did close under 95.70 Friday, so I would expect more selling.

However, 95.31 should offer strong support. Watch to see if this level holds as s
upport.

Apple:

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

Apple closed at 112.71 on Friday, just above the 112.50 level. A test of 109 would be a great price to get long Apple.

109.38 should offer strong support.? However, it Apple had two closes under 109.38 for two days, it could drop to 100.

The short term 60 minute chart has moved into an uptrend.

Watch list:

Bullish Stocks: AMZN, NTES, BIDU, DPZ, FLT, EW, BABA, ADBE, MA, WDAY, V, NVDA, SRPT, DLB, PTC

Bearish Stocks:? VRTX, TGT, LEN, HRI, CBI, HFC, TILE, SHLD, SRCL
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Be sure to check earnings release dates.