A steady selloff from morning highs
brought the Dow Jones Industrial Average (DJIA generally; DJX below) to support
from a 5-week price channel. Meanwhile Apple shares – being mentioned here due
to a reader request – appear as bullish as ever.
As the closing bell rang, the S&P500
settled 0.8% lower. The NASDAQ shed 1.0%, and the DJIA was a relative
outperformer with only a 0.7% decline.
The last hour of trading brought the Dow
to support from a 5-week, upward sloping price channel. Price temporarily
pierced through the support, arriving at the intraday low of 12607, but the
hourly bar then rebounded to close at 12653, somewhat above the support line.
The intraday low was also notable for being quite close to the 200-period
simple moving average using hourly candles, currently at 12583.
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| DJX, 90 d 1h |
Apple shares have trended very bullishly
over the past 7 trading sessions after consolidating since approximately
mid-April from their late-2011 / early-2012 advance. Thursday of last week saw
price action break through the resistance of one upward-sloping price channel
(marked in red below; resistance was at about $601), and price continued to
appreciate until today encountering resistance from a steeper upward-sloping
price channel (marked in yellow below; resistance was at around $620).
Even with today’s modest 0.9% decline,
AAPL remains about $27 above its 200-period SMA based on hourly candles, a
level of bullish sentiment that, before the past 5 days’ price action, was not
encountered since April 13th.
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| AAPL, 70 d 1h |
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