Apple Gets Whacked is a sign of things to Come?
Apple is a great indicator for the overall market, With Apples trade below $500, is this a indication of more to come? If the stock continues lower can the broader market stand up? With roughly 20% of the NASDQ we don't think so. The stock market is a bit overbought anyway . I would expect the market to soften up a bit in this area. I want to acknowledge the continued support found in the last week in this market. Importantly, the S&P held 1462 on a pullback Friday, finding support just above the previous major highs. There is no data today, but Bernanke will speak after the close. This week traders will be paying close attention to bank earnings which are expected to be strong and can be the catalyst to push this market to the 1505-1510 target level. Also, CPI and Retail Sales data will be closely watched tomorrow. A close below Friday's 1462 will be discouraging but only a close below the next major support at 1451.75 will start a bearish sentiment calling for a healthy correction. Lastly, a close below 1446-44 will signal a likely reversal encouraging a test to the New Year's gap at 1425. What's the trade? I am SELLING the MARCH e-mini S&P at 1471.50 Level with a BUY stop 1489.00 stop my target on the downside is 1427.00. This trade expires at 12pm central if not filled. Follow us on twitter to get live trade updates @Rilczyszyn. Good Luck and Good trading.
Resistance -1471.5*, 1488*, 1505-10**
Support- 1460-62***, 1455*, 1451.75**, 1446-44*
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