On
Friday the Nasdaq diverged sharply from the Dow and S&P on the back
of Google's earnings report. After today's close Apple earnings are
out. Given how sharply AAPL shares have risen into earnings it's pretty
much a given that the Apple report will provide the sell-the-news type
of event that early entry tech buyers have been looking for.
The
major indices don't diverge for long and given the idea that AAPL
earnings will offer a profit taking opportunity we suspect that the
Nasdaq will come back to earth as opposed to the other indices playing
catch up.
The
S&P has now given us 3 reversal signals in a row and with
conditions this overbought, we are looking for some type of correction
early this week. What we do know is we won't be drawn in by a strong
opening either today or tomorrow as the chances for a reversal after the
AAPL report are just too high for our level of risk tolerance.
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