Apple Of My Eye:

Apple is widely accepted as a market proxy, and its health, or lack thereof is important to watch. It has lost one quarter of its value in this market drawdown, and is now clinging to its 200 day SMA. Whether it can hang onto that line and bounce from here will have a big say in where overall markets go from here. I am not calling a bottom, as no one knows when that could occur, but if this stock makes a stand somewhere in this vicinity it could be a small boost of confidence. It now sits nearly 60 handles from its now downward sloping 50 day SMA, and remember in bear markets we often see short lived violent rallies to the upside. The name can rally 20% and still be in a downtrend, until it can reclaim that line. Today recorded a bullish inverted hammer candle which did find a floor at the round 240 number intraday. It must remain in this area, in close contact with the 200 day, as we know the old saying “nothing good happens below the 200 day.”

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