It’s back to the Steve Jobs era when Apple had a profound effect on the overall equity markets. The primary news was not so much the earnings beat, but the generous $30 billion dollar buyback, dividend bump, and a Halley’s Comet rare 7-1 stock split. Since Apple has broken out decisively as shown in the weekly chart, there is more reason to track it for further gains. If Apple continues to be bullish, the levels of interest are in the monthly chart. The first level of significance is the April monthly bullish price flip at 561.02, followed by the TDST Resistance at 603. Judging by the weekly volatility squeeze, these levels are easily achievable.
The equity indexes opened higher in sympathy with Apple, but normalizing to levels consistent of price exhaustion. Coupled with yesterday’s anemic move lower, the markets still need to work off the excess bullish sentiment, either through consolidation or a market pullback.
S&P 500 (SPX) SHORT TERM OUTLOOK: NEUTRAL
Bearish if SPX closes below 1864.85 daily price flip.
Surprisingly the 60 minute S&P 500 chart recorded an “unperfected” TD Buy Setup @9 with such a small range. If the SPX follows through with another higher high above 1884.70, the 4 hour SPX goes into Countdown mode and the daily SPX will seek out to finish the TD Sell Setup up to “9”. Absent of that scenario, markets will continue to meander, with a decent possibility of a bearish reversal.
S&P 500 (SPX) SHORT/INTERMEDIATE TERM OUTLOOK: NEUTRAL
Bearish if SPX closes below 1864.85.
S&P 500 (SPX) INTERMEDIATE/LONG TERM OUTLOOK: BEARISH
Neutral if SPX closes above 1857.62 and accompanied by either the Nasdaq closing above 4155.76 or the Russell 2000 closing above 1151.81 (updated April 21st).
S&P 500 (SPX) LONG TERM OUTLOOK: BULLISH
Switch to neutral if all of the following occurs: SPX closes below 1848.36, Dow closes below 16457.66, Nasdaq closes 3771.48, and Russell 2000 closes below 1163.64 (updated April 2nd).