Stock Market Technical Analysis Blog
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Continuing from last night's discussion of AAPL's rising wedge that was projecting an imminent drop, the wedge resolved itself this morning with a sudden drop in AAPL taking the entire market down with it. The opening lows did not last long though as the market is still in QE3 prop mode. Focusing in on AAPL tonight with the three charts above, starting in the top left corner daily bars chart we see that today's low actually pierced through the red 5 EMA line conclusively but they brought it back up through it to try to sell it as a price 5 EMA line bounce. Not what really happened but they are looking for takers.
In the top right corner chart, we see that AAPL printed a bullish reversal candle but without a few candles of descent in front of it it's not actually a reversal candle at all but that is what they are also trying to sell.
In the bottom chart above they spent the entire day building somewhat of an intraday ascending triangle. It's really too sloppy to be picked up as an ascending triangle in most pattern recognition software out there but to the human eye it is obvious that is what they want us to read it as being an ascending triangle.
All three of these extremely poor setups under normal circumstances would be totally ignored but knowing the Fed is determined to push the market higher and that AAPL is their most effective tool, anything could happen tomorrow especially since Wall Street's baby is back down below it's channel.
The eight big picture charts are updated below.
The eight big picture charts are updated below.
Alan
Click on image to enlarge
Click on image to enlarge
