as you can see from the 60 minute chart below, AAPL gapped up and bounced between R1 and R2 all day today, spending most of that time on the lower end of the range. sometime this week i would expect AAPL to either break below support (R1 is now support) or above resistance (R2) and whichever way it breaks just might determine the next near-term trend for the stock. add to that the broad markets are also sandwiched between some significant levels as well and i’d say that days like today are right up there in my book as a great time to sit on your hands and not try to force any new trades. like i said yesterday, best to let the dust settle on the AAPL earnings release and it might take another day or so before the technicals and market action give us a more clear picture as to it’s next likely direction. i have no doubt that the majority or bulls are salivating all over themselves while the bulk of bears who came in heavily short today are feeling dejected. however, when i look at the index charts from the 60 minute frames all the way out to the weekly frames, today’s move up does not significantly alter the technical picture. i will post some of those longer-term charts this evening.
