Does One Bad ‘Apple’?…
S&Ps were down 600 at 1470 this morning on the heels of Apple Computer
(
AAPL |
Quote |
Chart |
News |
PowerRating) preannouncing bad earnings. The stock is down nearly 50%. Pretty tight range in Globex last night, as we only traded in a 500-point range. It will be interesting to see how the market reacts to the AAPL earnings news.
On the upside, we need to get above a resistance zone from 1478.50 and 1483.50. If this happens, look for a move to 1490. Along the way, 1485.50 to 1486 will be the first resistance. If we were to get above 1490, the next upside target is 1497.
On the downside, we need to hold support between 1473 and 1467. If this zone fails, look for a trade to 1460. If we have support, between 1462 to 1459.
If that were to fail, we will then look for a retest of the important area between 1456 and 1451. Any amount of trading in the zone — especially if we were to settle in this zone — is a major negative for the market. In other words, if the market is healthy for the bulls, we should not trade back down to that level today.
The NASDAQ was trading down 46 handles at 3712. One very interesting thing to be aware of: while the market rallied significantly yesterday, finishing up 113 handles, we are still lower for the week. In other words, we are not out of the woods yet.
Regarding AAPL, the first question is can the market bail out another company again? Last Friday it was Intel
(
INTC |
Quote |
Chart |
News |
PowerRating) and today AAPL. If it can, it will most likely show the overall strength continuing to build and point to a couple of weeks of decent upside potential. If it cannot, it would most likely take back all of yesterday’s gains and point to a more “southerly direction” down the road.
We see support between 3705 and 3695, then 3665-3648, which is very important. If we trade below this level, look for another move back down toward the 3600 zone, and possibly even down to the 3580 weekly low.
If the market is healthy and the upside is to remain intact, we should not trade below 3650. Resistance is at 3750 to 3760, and above that, look for 3805. If the market gets above that, we should be headed toward 3870. Any settlement above 3800 is good.
Dow had a good strong move yesterday. We’re still looking for 11,000 in the short term before we come to any serious resistance. One note: the first level for the Dow where we may have some trouble is right around 10,900.