The action in QQQQ was interesting on Thursday. It was actually positive much of the day, but ultimately succumbed to the market’s weakness and closed down 2.7%. The outperformance has me thinking this is a good place to look for bounce plays. One chart that looks interesting is Apple (AAPL). Here is a 60-minute chart. Granted, bullish divergences have not been very reliable during this bear market, but I cannot ignore postive signals on the RSI, MACD, and Stochastic. The price action is flattening out. AAPL was only down 1.2% on Thursday. I am not calling a market bottom. But I interested in playing any technical bounce that occurs and this might be a good place to look. I’ll buy on a break above the red resistance line with a stop below the line. Price target is $120.
That gap above $120 is just begging to be filled… the rally up will be swift and violent
Craig, I too was looking at Apple. I still see downside to come, it should be breaking its low So I will wait until it hits maybe low 80′s or even in the high 70′s. I think your chart shows distribution going on and it will likely break down even further with the market.
As far as minute wave iii, I seen an EXACT structure to get to the 2002 low. The Fib expanison was 2.654 almost exactly 2.618.
The 925 number I used was a 1.618 of this minute wave iii. Being an exteneded wave, I should have recognized that this higher expansion is likely to occur.
Adjusting my start point and using the true start point of Sept 2nd high, I have computed the an $SPX low for (likely) 2008 to be 815 SPX.
That is my next target.
So Apple is likely to get flushed out one more time to a new low.
So my new target to end this current decline is $815 SPX. I will post a significant blog this weekend on it and showing how the past wave strcutures often repeat (and thats no coincidence). Past wave structures from the 2000-2002 decline and even 1929-1932 decline give us clues on how far these things extend.
Capitulation and social mood is starting to get near extremes. As a collective social humankind, we MUST correct back up soon. I trust we will. I trust the market will respond accordingly to this correction.
Although we are due for a countertrend rally today if thats what your talking baout