Your comments on the SOX make good sense. I had forgotten about that H&S, whose bottom neckline naturally makes for a resistance line.
On the cautious note, that is an ascending triangle forming on the SOX and it is possible it could break through now, though the odds are against that.
stockcharts.com[h,a]daclyyay[de][pb9!b4!f][vc60][iUk12!Up5,3,3]&pref=G
Another point of caution is that since 38.50 has cleared, the air is thin, volume/price wise, until about 39.50:
stockcharts.com[h,a]daclyyay[dc][pi!b4!f][vc60][iUk12!Up5,3,3]&pref=G
39 is a natural resistance though, and as I mentioned earlier, is the target of an ascending triangle formed on the 15min chart (2122 NAZ - my thumbs typed in 2112 earlier).
Also (ranging off the reservation a bit), the DOW is at a critical point and a break of 10600 could extend this rally:
stockcharts.com[h,a]daclyyay[dd][pi!b4!f][vc60][iUk12!Up5,3,3]&pref=G
...and the SP500 has already cleared into thinner air:
stockcharts.com[h,a]daclyyay[dd][pi!b4!f][vc60][iUk12!Up5,3,3]&pref=G
Anyway, my plan A outlook right now is that the SOX tops at 445ish, with the NAZ topping as high as 2120 (39Qs).
But, those above cautions are up front in my mind
Sorry for the long posts, but when a trend reversal is at hand, I get to thinking a lot.
J.K.
BTW, fascinating question to Kevin about AAPL - looking forward to the answer. |
