$SPY $SPX – Having patience is by one of the most difficult parts of this job. I have ran into MANY situations in which I was late for a move, or was early – the similarity between the two situation is that they both show a lack of patience. You need to know what you want to see, and until you see it.. BE PATIENT. I think this market needs some more time to set up again. I do not have enough information at this point to determine which way we are likely going to go. We did have a strong bounce off the open, but the market fell apart near the end of the day. We are now below the 8 EMA, a hold below this for a couple more days and we are likely heading to the 50 SMA. If we reclaim the 8 EMA, and hold higher – you better be ready to great the NEW ALL-TIME HIGHS. This all being said, I think we need more time to determine which scenario is a likely outcome.
Bank of America has a NICE daily pattern. The 8 EMA is right next to the price, and we are crossing 52 week highs. I think $BAC could be the next leader of the banks. Many want to point to $GS as leader when in fact I think we are just seeing rotation out of $GS into (most likely) $BAC.
Google is trickling lower, and not really showing any real strength. I think We need more time on this name as it appears Apple ($AAPL) is getting some inflows from Google ($GOOG).
Amazon ($AMZN) is not really doing anything. We are sitting at some support on the daily but overall, it is a weak name and I would not be putting my money there.
Apple finally crossed THE downtrend today. That does not mean “game on” bulls though it is a step. Going forward (in the next day or so), you would like to see Apple ($AAPL) hold higher and form a momentum base. If we get that we are likely going to receive a continued move higher. The 50 SMA seems to be a mangnet. I am pretty bullish on Apple now as it finally crossed the downtrend we have all been talking about. I do not have a position it as it has not shown commitment, once it does – I will consider it.
Green Mountain Coffee ($GMCR) has a NICE daily chart. It is clearly setting up for higher prices, and if we see a uptick and green day tomororw look for $GMCR to bast off. It is one of my favorite patterns right now. Nice momentum in the name.