- S&P 500 may move down to 2000 point level
- Dow jones index and QQQ still looks bullish
- Apple stock price fall below 107 price level may induced massive sell of the stock.
Wednesday stock market bullish sentiment leaded by bio tech and oil made a signal that short run pull back is over. But todays pull back of market index dow jones and s&p 500 make the whole thing different. Today SPX lost all its yesterday’s gain and closed below the previous day low. Todays spx close signals that bull completely give up and bear is in the control of market. This pull back also sets another possibility that SPX will touch 2000 points again.
Spx next support level clearly at 2000 points zone. Because 200 day moving average is right now 2015 point and 100 day simple moving average is also 1993. Another points is SPX trend line support is also at 2000 points zone.
Today SPX gets support at middle band of Bollinger. Tomorrow we will watch whether market will be headed towards the 2000 points or Bollinger Band middle point will point of support. However what happens to the market tomorrow, market needs some days to start its bullish move again.
Dow Jones Index:
Dow jones index also lost .98 % today. Index also gave back all its gain of previous day and closed below previous day low. However, index looks much better than s&p 500 . Index also closed above the middle band of Bollinger band. Tomorrow’s price action could be determinant of which way index will move.
QQQ also down 1.44 % today. QQQ is still holding above the trend line. From chart pattern QQQ is bullish even its lost 1.44 % of its value today. QQQ points lubricated by its heavy weight components Apple(AAPL).
From fundamental or valuation side, apple is strong buy. However, technical for apple chart says completely different thing. Apple stock was in 62 % Fibonacci zone in the last few days. Apple tried to close above 200 day simple moving average but failed.
Apple stock chart made a shooting star right at the 200 day simple moving moving average. Stock failed broke this shooting star last few days and went side ways. Today stock broke to the down side and lost its 2.18 % value. This is bad for apple stock because apple just launched new produce IPhone SE. Stock such massive fell down indicates new product launch is not that successful.
Apple next support level is at 107 which is 50 % retracement level of Fibonacci. Now we have to watch stock react at this level . Falling down below this level will be bad for the stock. Falling down below 107 price zone may initiate huge sell of the stock and that sell off might affect the market index as well.
Bottom line: Market is still on the bullish mode except the apple chart. Apple stock next few days move may influenced the overall movement of the market.