Stock Market Viewpoint

Stock Market Viewpoint
Reading the Tea Leaves...

Friday, November 9, 2012

Support on SPY & AAPL

Stock Market Technical Analysis Blog

Click on image to enlarge

The Stock Market finally found some stability today primarily because of technical support that SPY and AAPL reached.

  • In chart one, we see that the SPY reversed today after touching down on the 50% Fibonacci retracement line yesterday.  
  • In chart two, AAPL also touched down on a longer term 50% Fibonacci line today.  
  • In chart three, AAPL reversed up today after touching down on the black 200 day EMA line yesterday.  
  • In chart four, AAPL's price bar found support today on the gold 324 day EMA line while the pink 50 day EMA is poised to bounce up from the rose colored 108 EMA line just above in that chart, a powerful combo setup.
All this points to the stock market having found at least a short term bottom here.  

One problem though, the bonds shown in chart five have already taken off to the upside and are claiming victory over stocks.  Either stocks or bonds will have to give in and turn down as they trade inversely 98% of the time.  Next week we will see who the winner turns out to be...stocks or bonds.


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