Stock Market Viewpoint

Stock Market Viewpoint
Reading the Tea Leaves...

Wednesday, October 10, 2012

Huge Pivot Situation Tomorrow

Stock Market Technical Analysis Blog

Click on image to enlarge

In the market today AAPL reversed with a $5 bounce using the technicals discussed in last night's blog, even though there was heavy selling in all the major indexes.  Now AAPL is quite capable of breaking out of its downtrend tomorrow if the major indexes use the technical setups they have tonight to lift tomorrow.

Looking at the charts above:

  • top left and middle charts (Nasdaq & QQQ) are both setup to start a red /pink 5/50 bounce tomorrow
  • charts below those (S&P 500 & SPY) are set up ready to begin a red/blue 5/20 bounce tomorrow
  • below that the DOW is also setup at the red/blue 5/20 juncture
  • to the right of it AAPL is set to start a green /pink 10/50 bounce tomorrow
As these setups developed today, the VXX (VIX Futures) shown in the right side center chart, found resistance at the blue 20 EMA and the dreaded red/green 5/10 VXX up cross did not happen.  

All of this together we have a huge pivot situation, either these 5/20 and 5/50 juctures will bounce or pierce down through by the end of the trading day tomorrow.  It is really quite a large pivot that could establish a trend for the next week or so.  If these EMA junctures do pierce down through instead of bouncing it will cause the VXX to have a red /green 5/10 up cross which would trigger widespread automated sell programs.


AAPL & big picture clusters shown below:

Click on image to enlarge

Click on image to enlarge

Click on image to enlarge

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