Stock Market Technical Analysis Blog
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Today's market was pretty much a sideways movement all indexes considered. As traders and investors both held back to watch and see what comes next for AAPL. In the two APPL charts above the top chart if a one year chart of daily bars and the bottom is a five year chart of weekly bars. Looking at both charts it is easy to see the resistance that AAPL ran up against a couple of weeks ago. The institutional support under AAPL today was impressive but it still closed lower today.
If Wall Street can regain control of their pet stock then they might be able to keep a sideways range going, if not, the upper daily bars chart shows strong trendline support at 600 plus the psychological support at such a large round number. Granted if we continue lower there should be the obligatory bounce at the center green line. Traders and investors may well be comfortable playing long in the market if AAPL can just trend sideways.
If AAPL starts moving lower quickly to the 600 level there could be several days of real ugliness on just about every stock out there but they could easily hold it sideways at 600 for weeks if we end up going to that level as they did from mid-May to late-June shown in the upper chart. You can't rule out a surprise premarket gap up in AAPL on any given morning to peg the upper channel line at least one more time in the upper chart. Until the AAPL scenario is clearly resolved trading is likely to be choppy and then when AAPL does pick a direction stocks should follow.
Alan
If Wall Street can regain control of their pet stock then they might be able to keep a sideways range going, if not, the upper daily bars chart shows strong trendline support at 600 plus the psychological support at such a large round number. Granted if we continue lower there should be the obligatory bounce at the center green line. Traders and investors may well be comfortable playing long in the market if AAPL can just trend sideways.
If AAPL starts moving lower quickly to the 600 level there could be several days of real ugliness on just about every stock out there but they could easily hold it sideways at 600 for weeks if we end up going to that level as they did from mid-May to late-June shown in the upper chart. You can't rule out a surprise premarket gap up in AAPL on any given morning to peg the upper channel line at least one more time in the upper chart. Until the AAPL scenario is clearly resolved trading is likely to be choppy and then when AAPL does pick a direction stocks should follow.
Alan
