The S&P 500 hiccups in response to news from the Federal Reserve

The S&P 500 (ETF Proxy – AMEX:SPY) put another wild hiccup on the daily charts in response to news from the Federal Reserve this week.

You can see the turmoil and the rapid attacks from both bullish and bearish camps on the chart, but neither side seems to be able to put together any sustained campaign.  I keep an eye on this market for the day that order returns, but am focused on other opportunities…

 

Opportunities such as Pfizer Inc. (NYSE:PFE) PFE has maintained relative weakness in spite of the short term spike in the market index.  Now, another lower high has formed.

I would expect to see price break down below the $33.75 level next week and would expect to see an acceleration to the downside by week’s end

 

 

 

 

 

 

Apple Inc. (NASDAQ:AAPL) is a stock who’s bullish interests seem to have lost control of the trend.  It started with a double top at the end of April, but our proprietary indicators forecast one more bullish thrust.  That exhausted itself as a lower high, and I have been stalking this for a daily price pattern ever since.

It seems that the balance has shifted, and the bearish “coil” that has formed between the 50 SMA (Orange line) and the 100 SMA (Pink dotted line) is ready to release.  With protective stop losses set above the $130 area, I would expect this stock to break down with conviction this week.

 

 

 

 

 

 

Morgan Stanley (NYSE:MS) Is pausing near highs as it digests its recent gains.  I would let it breath and expect to see it retest the highs by the end of the week.

The odds according to our proprietary measurements indicates only a 60% chance that we break out to a new high, so I will be on the lookout for any signs of a double top or false breakout.