stock market
A 25 Percent move in the S&P Looming!
Right now, I’m looking at Apple (Nasdaq: AAPL) beat earnings as the stock goes higher in after hours. Today we broke to a new intra-day high along with a new closing high. After this huge run up, I am looking at this week’s close to see where we are headed next. A decisive break above 956 on the S&P and we could easily get to 1006 and after that there is really no potential resistance. So what does this mean:
If we break above 956 on the weekly level, this is also a break above the 50 MA on the weekly charts. This is a level viewed heavily by big mutual fund and institutional buyers. If we convincingly break above this level I will be looking to go long at any opportunity. We could really see another 25% to the upside (yes 25%!) if managers really start to put some money to work!
On the other hand, if we decide to break down, then we will have to measure the size of the pullback, because right now everyone is looking to get long and for some reason every earnings report is being view positively. So if we do get some selling pressure I think it can be a real chop to the downside until the August jobs number comes out (August 7th). If this number is view negatively, it can really start a pronounce move to the downside. However, if we get something that beats expectations then the market may start it’s upward stampede. An early tell signal will be the jobless claims numbers that comes out every Thursday morning. These numbers will also be used as catalyst in either direction.
So in the end, the next move could lead to a 20-25% in either direction so I will be patience until the market shows it’s hand.
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