Stock Market Technical Analysis Blog
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In the broad markets we saw a slight improvement Thursday and considerable improvement in the technicals on Friday. In the charts above in the top row the S&P 500 is beginning a red 5/ pink 50 EMA lift. In the DOW (top center chart) we see it beginning a pink 50/ rose 108 EMA lift. The XLF in the top row third chart, we see it in the third day of a red 5/ pink 50 EMA lift. Looking at the two lower charts, the Nasdaq is having trouble underneath the pancaked pink 50 and rose 108 EMA lines while AAPL is struggling to hang on to its gold 324 EMA after a major rescue of losing the line on Thursday.
As long as APPL's 5 EMA doesn't slip through its gold 324 EMA line it can continue to hold in this area without problems. The Nasdaq, however, desperately needs AAPL to firm up support at its 324 and start rising from it while the Nasdaq red 5 is still close enough to the pancaked pink 50/ rose 108 to jump back above it from an AAPL short squeeze. If all five charts get in sync from another rescue play on AAPL we are likely to see the Santa rally begin. If AAPL loses its 324 line convincingly then the Nasdaq will be in real trouble as a pink 50/ rose 108 pushdown will begin for it. This could produce a rare market divergence where the S&P and DOW and XLF are all on solid ground, climbing higher and the Nasdaq and AAPL are going down the chute. Very little market history on how that would turn out if it continues.
As long as APPL's 5 EMA doesn't slip through its gold 324 EMA line it can continue to hold in this area without problems. The Nasdaq, however, desperately needs AAPL to firm up support at its 324 and start rising from it while the Nasdaq red 5 is still close enough to the pancaked pink 50/ rose 108 to jump back above it from an AAPL short squeeze. If all five charts get in sync from another rescue play on AAPL we are likely to see the Santa rally begin. If AAPL loses its 324 line convincingly then the Nasdaq will be in real trouble as a pink 50/ rose 108 pushdown will begin for it. This could produce a rare market divergence where the S&P and DOW and XLF are all on solid ground, climbing higher and the Nasdaq and AAPL are going down the chute. Very little market history on how that would turn out if it continues.
Alan
