Monday, January 14, 2013

Waiting For These Tech Giants To Bounce

Stock market felt the weight of AAPL and IBM today.
I discussed here before why these two giants are the most important indicators of this bull market. They have the heaviest weighting in their main respective indices - NDX and DJI.
I put together a comparison chart that shows how the current scenario may be a repeat of 2010. Both stocks are not trading well and have some unfinished business below their current levels. QQQ (NDX) and DIA (DJI) are going to wait for them to test those levels, and may go a bit lower in the meantime. Once this short-term bearish action is completed, AAPL and IBM will reverse, stop weighing on the overall market, and let it go higher, much higher.

click on chart to enlarge

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