Some charts February 6, 2013
SPX has gradually splattered all over the place. We had one big day down and moved to the 10 day line and than a reversal move and than a hammer close today. There is possibly a formation of a broadening top chart pattern or megaphone pattern. These patterns are bearish in nature and usually resolve to the down side. The market is still overbought to some extent yet it can move either way higher or lower. These patterns have traders scratching their heads. We just have to see next few sessions how this resolves.
RUT This index is much different and looking lot more healthy compared to $SPX at the moment. Its has carved a some what upward channel and still leading the moves. The broad market rally is still intact and prices moving higher.
GOOG This stock has been downgraded three times this week and yet refused to budge. The stock gap opened today and quickly reversed to make a tag above 770 and finished the day at 770. On daily chart the stock is showing strength and commitment. GOOG made the highs and retraced a little and now moving sideways at a higher levels of 765- 774.
AMZN The stock hit its 50 day moving average and bounced higher only to fall back today to the 261 levels. Looking closely there is a bearish flag formation on the charts. Any breaks below 259 and the 50 day moving average with great force can lead to lot more downside. Stops should be set below the 50 day moving average.
AAPL made a quick trip to the 465 earnings gap area and retraced towards the close of the day. AAPL has rumours of stock buyback programs and there was no substance to it or confirmation. The bulls in AAPL were excited to see this fallen star awakened . It is least to say, that AAPL may try to gap open higher into the gap above and may run. R1 is around 478 and than R2 the downward trend line.
SSYS Has moved up nicely from our last buy area and showing commitment. The severe down move has been retraced 50% so far after bouncing off its 50 day line last week and forming a upward channel. The stock can easily move up to its previous top.
FB After bouncing off 50 day line FB has moved higher 2 days in a row. It has yet to fill the gap created when it sold off between 29 and 30. Once the gap is filled expect more from this stock. There is however, some resistance here at 29 and it needs to overcome that eventually.
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