Friday's Bullish Hammer was a fooler. The low of that candle got taken down, and the Symmetrical Triangle target of 750.64 got MADE. With that target out of the way, the SPX still is looking for a near-term bottom here at Blue #4, and also looking for a Double Bottom with the November low. The overnight risk of a huge gap down in the futures is removed (futures currently are up a few points), so playing the SPX long for the Double Bottom certainly is reasonable, but I don't like the market well enough to play it. I particularly didn't like the action yesterday in the MOO, or in AAPL (see charts below).
The NASDAQ was down 53 points yesterday, and closed a point off its low. 1340.14, another 47 points below here, still is IN PLAY.
In the MOO, the trendline off the December 22 low was a TWICE validated trendline, and a QUADRUPLE Bottom. It was broken in yesterday's trading, completing a Double Top (31.13 and 30.87), and putting a downside target of 20.67 IN PLAY, as long as the MOO trades below that broken support.
Coming off the Bullish Island Reversal, which was a two-year low in the stock, AAPL hit its marks beautifully. It rallied to the top of the Falling Wedge for a DOUBLE trendline validation of resistance in late January, pulled back and found support at the Bullish Cross of the 20/50 Day Moving Averages, then broke out of the Falling Wedge to the upside. LOVELY.
Pullbacks to pattern breakouts are to be expected, but they're expected to HOLD, as support. On Friday, AAPL did just that. The February 2 low at the Bullish Cross of the 20/50's, prior to the upside breakout, was 88.90. On Friday, AAPL gapped down and tested that low, and also tested the top of the Wedge. It held at 89.00, then rallied nicely into the close for a successful DOUBLE validation of horizontal price support, as well as the top of the Wedge. LOVELY.
Yesterday, APPL broke below the 88.90-89.00 DOUBLE validated support, and CLOSED about $2.00 below it. That "could be" some kind of Bear Trap, and we'll know that if AAPL reverses yesterday's nasty candle, but...but...but...YUK!!!
From the weekend...
"It's interesting how close targets can come to getting MADE. Friday's low was 70.21, within fourteen cents of the target. Ooo-oo, that was close! LOL."
Okay, okay, XOM only was toying with us. The 70.07 DOUBLE target ended up getting MADE yesterday. LOL. 65.64 still is IN PLAY from the Symmetrical Triangle breakdown.
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