Here are three great looking charts from Friday. First up is AAPL (seen above). AAPL has been trading in an upward sloping channel for the last couple of months. On Friday, it gapped up out of the channel on an big increase of volume. Definitely a bullish move and looking for a follow through on Monday.
Just as I was sure that the floor had dropped out, strength emerged as the S&P 500 closed on highs for the session.
Once again, I think this is a great example of using bad news to create a buying opportunity for the professionals. Here, we are seeing prices driven down by bearish news only to finish on the highs on increased volume. How could everyone be selling if the market closes on highs?
With February upon us, we have to wonder how much farther the market will fall. The S&P 500 is right at the trend line support levels and the MACD is reaching extreme, negative levels.
