September 27, 2016 - MDT Pro Tips A.M.

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

Profit taking continued yesterday with the S & P 500 closing to the downside 18.59 points, at 2,146.10.

The down to up volume picked up a bit as well with a reading of 3.06 versus 2.37 on Friday.

And the VIX jumped up almost 18% for the day to close at 14.45.

So what does all this tell us?

First off, the S & P 500 daily bar closed at 8% of the range.? Based on such a low close, I would expect the
low of the day to be violated before the high.

Yesterday's low was 2,145.04.? This is just above the 2,140.62 level which should offer support.

The second factor to look at is the VIX. As we know, the 12.50 level has acted as major support on the VIX for a considerable period of time.

And once again when the VIX got under 12.50, it bounced up.? With a close above 13.28 yesterday, a close today above that level and the VIX would want to move up to 15.63.

With the S & P 500 getting under the 2,154 to 2,157 area, I would expect that to offer resistance.

Pre open, the markets appear to open slightly to the upside.? I would expect price to hit resistance and reverse. Watch for a bullish reversal on the VIX to indicate when the markets should turn down.

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 a close above 13.28 today, the VIX should move up to 15.63.

14.84 is a minor resistance level.? 14.45 is a minor level to watch.

If the VIX stalls at the 15.63, I would expect the markets to bottom.

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

2,148.48 is a minor resistance level.

2,140.62 should still offer support.?

2,125 should offer support and it the current objective.

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

A close today under 117.97 and the objective is to 115.63. 115.63 should be a strong level of support.

117.19 is a minor support level.

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 closed just above the 137.50 level, at 137.69.

136.72 should offer support.? To move higher, it needs two closes above 138.28.

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 moved up to the 128.13 level and has pulled back.

Two closes under 127.35 and it should retest 125.

126.95 should offer minor support.

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 objective should be to a retest of the 65.63 level.? 65.63 should be strong support.

66.80 is also a minor to watch.? A close under 66.80 should also confirm a move down to 65.63.

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 closed at 96.34 yesterday. If it moves above 96.48, expect it to move higher.

96.88 is a level that should be very difficult level to get through on this drive.

If it does, expect it to head higher.

Apple:

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

Apple continues to hold the 112.50 level.

The short term 60 minute chart has moved into an uptrend. Expect another drive to the upside.

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.