The Apple (AAPL) Worldwide Developer’s Conference (WWDC) is aligned right with some technical barriers on the charts. The biggest news is probably already out when Apple announced they are intending to buy Beats. As of last Friday, Apple recorded the first of two major price exhaustion signals, TD Sell Countdown @13. With the WWDC coinciding with these exhaustion signals, Apple is expected to consolidate before making another run to challenge the previous highs near 700. This outlook is supported by Apple breaking above the monthly 603 TDST Resistance, and an active weekly TD Sell Setup starting the week on count “7”. Further evaluation will be required if Apple trades back under 603.
For the S&P 500 (SPX), by applying TD Trend Factor to the charts below, there’s identifiable resistance at 1931.45. This level will represent the first real test of the markets since breaking out from the 1900 level. TD Trend Factor is also confluent with both the 4 hour and daily SPX timeframes. If higher highs continue today, price exhaustion signals will start kicking in tomorrow, Tuesday.
S&P 500 (SPX) SHORT TERM OUTLOOK: BULLISH
Flip to neutral if SPX closes below 1919.63.
S&P 500 (SPX) SHORT/INTERMEDIATE TERM OUTLOOK: BULLISH
Flip to neutral if SPX closes below 1911.91.
S&P 500 (SPX) INTERMEDIATE/LONG TERM OUTLOOK: BULLISH
Back to neutral if SPX closes below 1878.48 next Friday on June 6th (updated May 30th).
S&P 500 (SPX) LONG TERM OUTLOOK: BULLISH
Switch to neutral if SPX closes below 1859.45 on June 30th.
The S&P 500 has just exploded since the initial bullish price flip on August 2012. But with TD Sequential and TD Combo beginning to record “13’s”, a bearish price flip is likely to occur sooner rather than later – in monthly terms. Note the Dow has achieved a “9” count TD Sell Setup.