All About Trends Mid-Day Update
Courtesy of David at All About Trends
There are two things we want to key in on here for the short-term.
1. After the close Apple reports earnings [earnings were very well received after hours]
2. What we see in the short-term index charts.
Right now with the market the way it is, the market MAY be looking for any bit of news to hang its hat on. That could come in the form of AAPL’s earnings. If the market wants to spin it positively then we could make a run for the border higher. Of course should the opposite happen they could really kill the market as AAPL is a kingpin.
So what if they pop the market on AAPL’s earnings? Then it’s all about watching resistance levels (red downtrend line). What if earnings are being priced in? After all, this issue is up 9 points today off the days lows. Is it a "buy the rumor sell the news" scenario? The red line on the chart above is resistance.
Let’s look at the indexes:
This move off the peaks of the two charts above could be construed as a Pullback Off Highs pattern. So be aware an earnings spin from a kingpin could push it back up towards recent highs. However in the charts below all bounces should be contained to the red downtrend line resistance levels as shown below.
Notice even with the market down today the full stohcastics are resetting themselves from oversold back to overbought or at least neutral. A move above those red levels says something else is happening and we’ll want to take notice of that BUT in the meantime the overall trend is still down.
So for now, we have the markets moving in favor with our positions and that is good enough for us.
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