Thursday 3 January 2019

AAPL upsets the cart

US equity indexes closed powerfully lower, sp -62pts (2.5%) at 2447. The two leaders - Trans/R2K, settled -3.5% and -1.8% respectively. VIX settled +9.6% to 25.45. Natural target remains the sp'2250/40s.




US equities opened broadly lower, and spiraled to 2447. There was a significant rally to 2488, but then the sellers reappeared... breaking a new low in the closing hour of 2443.

Volatility saw a morning high of 26.60, but despite equities breaking a new low into the close, the VIX did not confirm. It should be a mild concern to the very s/t equity bears. Note today's settling black-fail candle, which does lean to cooler volatility... if only for early Friday.

AAPL upsets the cart

We've seen a fair number of companies guide lower since early Q4. Yesterday evening's lowered guidance by the tech behemoth of Apple was some grade 'A' market drama...

AAPL, monthly

Seriously, is anyone really surprised? Apple stock has been cooling for FIVE months. Note the bearish macd (green bar histogram) cross seen in December. Natural target would be the 2015 (adjusted) high of $125s, with legacy gap zone of 123/117.

It was interesting to see Carter Worth note the 2015 high yesterday, and with Cramer touting $120 this morning. I would consider the AAPL guidance change as a very powerful sign that sp'2940 has been cemented as a key l/t top.

Extra charts in AH (usually around 7pm EST) @

Goodnight from London
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