Stock Market Technical Analysis Blog
Click on image to enlarge
I'd like to look at three things tonight, AAPL, UUP (US Dollar Index), and S&P 500 Index (SPX). In the bottom right corner a 30min. bars chart of the past week and a half of the S&P 500 we see that they have held it sideways now for five days successfully but haven't been able to break it out of the upper short term channel line. Just the fact that they have kept it going sideways for five days now is a show of strength to US Dollar traders meant to convince them to sell the UUP and flip back to stocks.
In the bottom left corner, the monthly bars chart of the UUP, we see the huge 5/10/20 EMA pivot point I discussed a few nights ago and we can see that the current monthly bar is still falling as more and more dollar / stocks flip traders are starting to exit their dollar trades after watching the strong sideways move of the S&P 500.
Another purpose of holding the S&P 500 sideways besides forcing the dollar down is to keep the market up until they either got an AAPL squeeze higher today or a Fed announcement squeeze higher tomorrow.
AAPL did not get a squeeze today from the release of the new i-phone specs but they were able to move it up some from the lower line of the sideways 3-week channel shown in the top right chart, a daily bars chart of AAPL. Tomorrow might be a better day for AAPL though since by looking at the top left corner chart they have set up the beginning of a nice 5 / 10 EMA (red/green lines) layup setup that also has nice price bar support off the blue 20 EMA this morning. If they are going to pop AAPL back up to the upper line of its sidways channel they have built a setup that could do it as of today's close.
AAPL 5/10 setup will be in play tomorrow but realize that even the slightest decrease in price premarket will change the red/green to a pinpoint pivot where anything could happen. We will have to wait and see how it plays out especially in the premarket where AAPL can be easily manipulated then in the afternoon we will have to see what comes from the Fed announcement. Most economists still don't belive a QE3 might really happen but if they decided to surprise the market, the short term reaction anyway, would likely be some seriously crazy market movement.
Alan
In the bottom left corner, the monthly bars chart of the UUP, we see the huge 5/10/20 EMA pivot point I discussed a few nights ago and we can see that the current monthly bar is still falling as more and more dollar / stocks flip traders are starting to exit their dollar trades after watching the strong sideways move of the S&P 500.
Another purpose of holding the S&P 500 sideways besides forcing the dollar down is to keep the market up until they either got an AAPL squeeze higher today or a Fed announcement squeeze higher tomorrow.
AAPL did not get a squeeze today from the release of the new i-phone specs but they were able to move it up some from the lower line of the sideways 3-week channel shown in the top right chart, a daily bars chart of AAPL. Tomorrow might be a better day for AAPL though since by looking at the top left corner chart they have set up the beginning of a nice 5 / 10 EMA (red/green lines) layup setup that also has nice price bar support off the blue 20 EMA this morning. If they are going to pop AAPL back up to the upper line of its sidways channel they have built a setup that could do it as of today's close.
AAPL 5/10 setup will be in play tomorrow but realize that even the slightest decrease in price premarket will change the red/green to a pinpoint pivot where anything could happen. We will have to wait and see how it plays out especially in the premarket where AAPL can be easily manipulated then in the afternoon we will have to see what comes from the Fed announcement. Most economists still don't belive a QE3 might really happen but if they decided to surprise the market, the short term reaction anyway, would likely be some seriously crazy market movement.
Alan
