The chart also shows that Keystone's 150-day MA slope indicator flattens and is now sloped negatively signaling a Cyclical Bear Market ahead. Note that a fakeout move occurred in early June when the markets were stick-saved. Therefore, stay alert, since if Bernake or Draghi show up in front of a microphone tomorrow and if either money printer coughs or picks his nose, announcing stimulus, the SPX can easily jump 20 or 30 handles in a heartbeat. These are treacherous markets due to all the central bankster intervention. So watch the important 150 and 200-day MA's tomorrow to see if price can move back above, or not. The indicators are set up the same as this mornings chart. The histo and stochastics want to see a bounce but the RSI, MACD line and money flow want to see another lower low in price after the bounce occurs.
The pink line at 1375 is very strong S/R. The 1369 level is where Keystone's SPX 12-Month MA Cross Indicator is at which is another cyclical bear market signals should it fail. Very simply, if the 1369-1375 area fails, it's ovah. The bulls better come to play tomorrow or the markets may experience an event tomorrow. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
AAPL 1 year RSI is 22. Lowest this year was 11. Take your chances waiting. Bounce in tomorrow oor obviously next week when you at least expect it.
ReplyDeleteAnon, watch the trend of the indicators such as RSI in addition to the actual numbers. Look for positive divergence developing which will provide you confidence that the bounce will occur. On the AAPL daily chart, the RSI is at 22-24, now dipping into oversold territory but the trend is solidly lower over the last couple months. Same with money flow, stochastics and the MACD line. The MACD histogram, however, is positively diverged which wants to see a bounce right now. Regarless of the bounce, the indicators tell you that lower prices will be on the way. The weekly chart is very negative. Thus, with 520 providing strong support, you are correct that a bounce is very likely from 520-538, perhaps u to the 50-week MA at 556, or back kiss the 200-day MA at 589, but then roll over, back down thru 520, thru 480 and lower as the weeks and months roll along. Thus, it is likely best to wait to see if another ten or fifteen buck drop occurs to get her down towards 520-525 for a very attractive long, if it runs upwards right away, that is fine, you never want to chase something, and there are many better stock plays available than Apple, so you would simply wait. As price would come up, then the better play is simply to wait and choose a new shorting level at one of the levels mentioned above, and enjoy the next ride down.
ReplyDeleteThanks KS, makes total sense. Thanks for the insight. APPL as you know is not really the play, more like the a indicator. So watching APPL, even Google and the little fish, QCOM, CRUS, NVDA, and the rest to get a pulse for a bounce for the market is more my idea.
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