Apple Stock is Less than 5pts Away From a Flash Crash
Stock-Markets / Financial Markets 2012 Apr 21, 2012 - 12:16 PM GMT
Apple Computer is only 5 points away from its 50-day moving average at 569.23. Selling could explode once it falls beneath that level. Whether it happens today or not depends on which major player pulls the trigger first. But they have to be sweating and praying that it won’t happen.
UUP made a deep 81.6% retracement and is now ready to reverse higher. This reversal has been unusual for two reasons. The first is that mid-cycle support is usually where the bottom stops for wave two retracements in rising markets. That is one reason why I was probably too quick in calling an end to the correction on Tuesday, even with a higher low. The second reason is that, structurally, the Tuesday was the bottom in Elliott Wave, even though it was higher. Today we learned that the market is always right, even though it is technically wrong!
QQQ has only one support between it and a freefall zone. It is the Cycle Bottom support at its 50-day moving average at 65.54. Once this dynamic duo is crossed, anything may happen. Stock options settle at 3:00 and it could be the start of a free-for-all move. I am not sure that anyone will be buying the market into the close today.
SPY may also cross a dynamic double support at 137.5-137.76 at any time.
Another options week is passed and the market is intact, for now.
Good luck and good trading!
Regards,
Tony
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