- During the trading session on Tuesday, we saw Apple rally slightly, as we continue to test the crucial 200 Day EMA.
- We are also testing the $215 region, a previous resistance barrier.
- Saying that, this is a market that I think continues to see a lot of overhead pressure, but it obviously looks as if there are buyers out there willing to get involved in buying Apple.
- Ultimately, this is a market that I do think goes higher given enough time, as we do have that gap to fill to go looking to the $222 level.
Earnings
Keep in mind that earnings for Apple comes out 31st of July, which of course will be the next major catalyst. At this point, I think it’s somewhat obvious that this is a market that has seen quite a bit of buying pressure underneath, as the 50 Day EMA has offered enough psychological support to turn things around. At this point, you could make an argument that we are trying to form a little bit of a “micro double top”, but I don’t see that as holding in this environment. After all, no matter what happens in the stock market, it seems like buyers are willing to get involved in stepping into the market and lift things.
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I have no interest in shorting Apple, nor do I have any interest in shorting the overall market itself. I understand that the market has been somewhat hot for a while, but ultimately the momentum is the most important thing to pay attention to. Quite frankly, if the earnings report gives us some type of significant pullback in Apple, I am more than willing to take advantage of that as I recognize the $195 level has a major floor in the market, and I think that you will probably have the opportunity to pick up a few cheap shares if we do in fact get spooked by the earnings report. On a higher move, I would be looking for $222 initially, followed by a move to the $239 level.
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