January 27th, Recap and a Look at Apple's Chart

This was a big day for Apple (the company, not necessarily the stock) as they finally announced the much-anticipated (and hyped) iPad. The stock ended the day higher after a wide ranging session. However, the action over the last two days shows a lot of confusion. Volume has been huge and the stock has not been able to close above the old resistance from the October high. This action feels toppy to me but for now I'm gonna assume the stock is stuck between 200 and the all-time high it set earlier this month. I'll be waiting for a move out of that range.

I've written about resistance from the Nasdaq's 50-day moving average and it's still capping the index. With the market as oversold as it is the bulls should be able to clear that resistance. If they can't make that happen this week I'll take that as a very bad sign.

The price action on the S&P 500 is similar to the Naz although it's not as close to its 50-day moving average. It touched the bottom of the November - December trading range today and was able to bounce. The next hurdle for the bulls is to take out this week's high. BUt I can't get excited about the prospects here as long as its within that old trading range.

Two upgrades as 50-day moving averages got approached or crossed today.