The S&P 500 (ETF Proxy – AMEX:SPY) finally has put some price action on the chart that is worth commenting on! With the turmoil in Greece dominating the headlines, the S&P has dropped out of the range it has been trapped in since February. Our forecasting model has the market at a short term low, with the odds highest for a short term rally back up into the $208-$210 area, then either a range or a drop back down to new lows would be expected. We will be able to better forecast the odds for a breakdown once the resistance levels have been tested.
Pfizer Inc. (NYSE:PFE) PFE continues to grind lower and has reached down to test areas of support near $33.25 per share. Power continues to build to the down side and I would expect to see a breakdown below support before week’s end
Apple Inc. (NASDAQ:AAPL) is following its forecast to the letter, and after breaking the 100SMA (Pink dotted line) it found a short term bottom and is moving back up to retest. I would trail stops down to the $129 level or take scratch profits soon as the breakdown did not occur with any real conviction. This lackluster follow through is often the behavior that precedes a short squeeze (Which could take the stock back up to $132).
Morgan Stanley (NYSE:MS) is worth following up on one last time as we see the fall out from the double top. This pattern remains one of my favorite shorting/exit signal for this reason…What a textbook example of the old trading adage “sell when you can, not when you have to”.
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