Monday, November 19, 2012

11/19/12 - EOD Update

As anticipated in last week's EOD Update, the bounce was underway either for {iv} green or a wave 5 gray. I also suspected that the catalyst was going to be related to the fiscal cliff.

Now the challenge is deciphering what sort of bounce this is. The bulls made a small statement today by closing back over the 200 day SMA but you know what they say about a single day.

So far the first part of the bounce looks impulsive so I will give the bears at least a zigzag or a two-legged bounce.

Note my AAPL weekly chart below. A few days ago, I speculated that it could potentially be forming a sloping neckline. So far, a bounce right on that line that was arbitrarily drawn.

As AAPL has been leading the past several weeks, we should keep an eye on this potentially more bearish H/S.

10 Min 

60 Min 

AAPL- Weekly

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