Wednesday, June 12, 2013

ImageImageThe S&P 500 (SPX) has all the look of another leg down. But before we get carried away, the SPX is currently at some short term downside targets. There are the small degree Fibonacci levels between 1608 and 1617. The classical 50 day moving average also resides near SPX 1610. While I am inclined to allow the current 9 count TD Buy Setup on the four hour timeframe to continue, my decision to stay bearish will be a closing price under SPX 1622.56. That level is derived from a DeMark bear price flip on the SPX. The grand idea is to allow all the various timeframes turn bearish one at a time. ImageApple (AAPL) has some new minor developments since the last post on May 31st. As of the present, AAPL is solidly locked in a quiet period marked by small ranges and with the Bollinger band entering into the Keltner band, it is now official AAPL is range bound. But what this indicator suggests is when the Bollinger band exits out of the Keltner band, volatility usually accompanies it and a fresh trend is established. The problem is the Keltner/Bollinger does not give the direction. While the safe method is to wait until the breakout, those into market timing can look at the TDST level at 434.20. if AAPL can hold that level on a closing basis from here, you will gain a head start if AAPL does launch from here. Any daily close under 434.20 would suggest the range bound trading continues. 

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Still positioned bearish but we are at the buy support area as indicated earlier so there is bounce potential. Since I am overall bearish, I am going to ride through it but if the SPX closes above 1622.56 today, I will go to neutral. (updated intraday)

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3 Responses to Wednesday, June 12, 2013

  1. gary johnson says:

    Take a look at the Dow Jones World Index $DJW http://stockcharts.com/h-sc/ui

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