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***** Friday we nearly reached my forecasted test numbers for both. The $DJIA at 13896 high nearly reached 13924 awaited test, which is the double top just below the all time high from back in 2007.
$AAPL on the other hand and perhaps even a bigger story is the pattern completion test near the 420. I've been talking and writing about this possibility off and on for several months. After the recent earnings breakdown it's time for a pause but the 420 is still beckoning. The problem with a possible pause and reversal at the 435 region is that it may cause confidence long enough to make the next downturn more severe.
As I wrote before, correction to $AAPL has been as much as 50% and 60% so the 360 region, which is the next major support level below 420 area, is not out of the running when we consider the top at 705. I did not wish to offend people who tell me things such as that have passed and will never happen again with $AAPL. OK maybe not, yet, the pattern is still there, and regardless of protestations it will not become something else just because of disagreement. Even if it takes longer to play out with much money to be made to the upside, the pattern completion will still be a magnet until such time that the pattern completes or until the price rises to form a new pattern. It behooves both skeptics and believers to keep both possibilities in mind.
That said, there are no rules against patterns within patterns especially in different time frames. It is the reason why we have to pay attention to the double bottom formed on the daily today as it could signal a V shaped recovery. Question being, as always, for how long and how high and no matter which way you wish to play, trade it well and carefully.
Happy Trading, Living and Dancing
Anni
The Daily Pick - $AAPL Pattern Outlook
©DayTrading with Anni 2007 - 2013 All Rights Reserved
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