iShares Russell 1000 (IWF) Tags All-Time High

The iShares Russell 1000 (IWF) closed in positive territory for the 3rd-straight day after trading to a fresh all-time high of $187.43. Uncharted territory and lower resistance at $187-$187.50 was cleared but held. A close above the latter would signal additional momentum towards $188.50-$189.

Near-term and rising support is at $185-$184.50. A close below the latter would be a slightly bearish signal with additional backtest potential towards the $182.50-$182 area.

RSI remains in an uptrend after clearing lower resistance at 65-70. A close above the 70 level could signal a retest towards 75-80 with the latter representing the overbought monthly peak from January. Current support is at 60-55. A close below 50, and a level that has been holding since mid-October, would be a bearish development and signal additional weakness towards 45-40.

sc.png

Bullish Action in the VIX

The S&P 500 Volatility Index ($VIX) fell for the first time in 3 sessions despite tagging a midday high of 15.39. Upper resistance at 14.50-15 and the 200-day moving average was breached but held for the 2nd-straight session.

The fade to 13.75 afterwards and close below prior and upper support at 14-13.50 was a healthy signal volatility is easing and may have peaked. A close back below the 13 level and the 50-day moving average before week’s end would be a more bullish development and signal a possible return to all-time highs for the market.

sc.png

S&P 500 Volatility Index ($VIX) Settles at Bearish Reading

The S&P 500 Volatility Index ($VIX) tested a low of 12.55 with last Friday and key support at 12.50 holding on the market’s opening gains. The surge to 15.27 afterwards breached lower resistance at 15-15.50 and the 200-day moving average but levels that held into the closing bell. There is upside risk towards 17-17.50 on a move above the 15.50 level.

Fresh and rising support is now at 14.50-14 and the 50-day moving average. Continued closes back below 13.50 are now needed to reestablish a possible  bullish signal again for the market.

sc.png

TLT Holds 50-Day MA

The iShares 20+ Year Treasury Bond ETF (TLT) was down for the 2nd-straight session after tapping a low of $139.78. Near-term and upper support at $140.50-$140 was breached and failed to hold. A close below the former and the 50-day moving average would be an ongoing bearish signal with downside risk towards $138.50-$138.

Current resistance from late October remains $141-$141.50.

RSI is in a downtrend with support at 55-50. A move below the latter would signal additional weakness towards 45-40. Resistance is at 60 and the November peak.

sc.png

QQQ’s Could Be Peaking…

The Invesco QQQ Trust (QQQ) had its 4-session winning streak snapped following the pullback to $205. Current and upper support at $205-$204.50 was triggered but held. A close below the latter would signal a possible near-term top with backtest potential towards $202.50-$202.

Resistance is at $205.50-$206. Continued closes above the latter and last Wednesday’s all-time high of $206.05 would be an ongoing bullish signal with upside potential towards $207-$207.50.

RSI has turned south on the close below upper support at 70-65. A close below the latter and the November low opens weakness towards the 60 level and late October support. Resistance is at 75.

sc.png

Major Earnings for 8-15-19

Before the open: Alibaba (BABA), Briggs & Stratton (BGG), Canadian Solar (CSIQ), Eagle Point Credit (ECC), iHeartMedia (IHRT), JC Penney (JCP), Pointer Telocation (PNTR), Tapestry (TPR), Walmart (WMT)

After the close: Applied Materials (AMAT), Globant (GLOB), Nvidia (NVDA), PagSeguro Digital (PAGS), Sundance Energy Australia (SNDE), Voxeljet (VJET), ZTO Express (ZTO)