Stock Market Technical Analysis Blog
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Following up from Thursday night's blog, where I mentioned the rally could keep going as long as AAPL didn't get heavy from its technically broken chart, AAPL ended up dropping hard Friday and today brought the entire market down with it. The Nasdaq took the biggest hit over the past two days and the S&P damage is also substantial.
In the chart posted above, the fifteen month daily bars chart of AAPL, we see that over the past two days AAPL has dropped out of its one year up channel just about as much as it did back on July 25th. On July 27th, Wall Street stepped in and caused a fierce short squeeze which put AAPL back into its channel and on to 700. The question now is will Wall Street be able and willing to rescue AAPL again in light of the widespread view that most companies earnings will be weak this time and may cause AAPL to experience "sell everything" selling if broad market selling kicks in. If Wall Street doesn't step in tomorrow AAPL's mother channel currently in the 475 to 525 range is going to start working as a magnet. How AAPL behaves may very well reflect how earnings come in on the rest of the tech giants.
Alan
In the chart posted above, the fifteen month daily bars chart of AAPL, we see that over the past two days AAPL has dropped out of its one year up channel just about as much as it did back on July 25th. On July 27th, Wall Street stepped in and caused a fierce short squeeze which put AAPL back into its channel and on to 700. The question now is will Wall Street be able and willing to rescue AAPL again in light of the widespread view that most companies earnings will be weak this time and may cause AAPL to experience "sell everything" selling if broad market selling kicks in. If Wall Street doesn't step in tomorrow AAPL's mother channel currently in the 475 to 525 range is going to start working as a magnet. How AAPL behaves may very well reflect how earnings come in on the rest of the tech giants.
Alan
AAPL & Big Picture clusters shown below:
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Click on image to enlarge
Click on image to enlarge
