Definitely a change in character from the past few months, and especially the past month today as the mid day swoon was met with buying rather than even more selling. The S&P 500 has recaptured almost all of the pre-speech level, and has consolidated a huge day yesterday in a very constructive fashion.
Looks like the wave of selling seen here is being caused by remarks from Benjamin Bernanke. Essentially he said the Fed's tools to fight headwinds is not infinite and the Fed does not have tools to prevent going off the fiscal cliff. Nothing shocking there but I guess the market believes the Fed has infinite powers. Maybe these words were directed at D.C. more than NYC. We shall see how long this temper tantrum lasts. The market had been consolidating yesterday's gains very well until these words hit.
Nothing like a 2% day to make oversold conditions evaporate. As constantly noted, the most vicious up moves come within the context of selloffs, and yesterday was a wonderful example of that notion. Friday morning there were extreme oversold readings in a multitude of secondary indicators, and just like that in a session and a half those have been relieved. Now to be clear neutral is very different than overbought so keep that in mind. One indicator I often post is seen below: …
It has been a remarkable year for Apple (AAPL) stock in so many ways; both up and down. After an epic rally in the spring, and another (if lesser) one this fall, the stock has been in its own "bear market" the past few months. Things were so bad it had not had back to back gains since mid October – quite a statement for a stock that seemingly could not go down back in February-April.
Despite the consistent selling there was only one gap down day for the stock, which you can see around $580. So if this rally continues that is a sensible spot to see the stock run to.
As stated late Friday all the necessary components for a short term bounce were triggering except for a high over the previous day's high… but it was close enough for government work. A point here or there in the closing 5 minutes would have done the trick. It is funny how the news often fits the market, and what I mean by that is that comments out of government Friday morning set stocks off just at the point they needed to, at the 61.8% Fibonacci retracement on the S&P 500. …