Tuesday, October 21, 2014
Perfect bounces off those trend lines as SkyNet is firmly in control.
We closed right on the 200 dma @ 1901 last night before AAPL's earnings announcement...amazing how often technical and fundamental worlds collide.
Next stop looks like the 150 dma @ 1926.80, which coincides with a major trendline (support has become resistance).
Thursday, October 16, 2014
We're right on it this morning after testing and bouncing yesterday to close unched for the year.
Managing risk, I went back to the 2009 lows and connected the dots.
The new trend line coincides perfectly with the October, 2007 peak.
Not a prediction, and this move could take some time, but if the selling intensifies, I'd rather be prepared.
Also, bear markets are defined by a 20% move off the highs.
2000 * .8 = 1600...which is right on the new trend line.
Wednesday, October 15, 2014
1846.25 is where we closed on 12/31/2013 and is a decent level of support on the chart. Probably makes sense to cover shorts in here but wait to get long.
Sentiment has deteriorated enough for us to get a bounce back to the 200 dma @ 1900.
Saturday, October 11, 2014
Recently, everyone has been breaking out their crayons to make trendlines.
But every trendline I've seen ignores, as an anomaly, the October 2011 and November 2012 moves.
The chart above shows a trend line drawn that includes those points....since we just broke below the 200 dma @ 1900 and things could get ugly.