Monday, August 12, 2013

Is more correction in store?

Last week we saw some pretty good selling. Momentum may have the same fate in store for this week. 1700 was the line in the sand for the S&P and it turned back pretty hard. I am going to take the time this morning and take a look at $GOOG

$GOOG has had a long run up from September of last year when it bounced off the 200d SMA.  A few pull back but at this point it has been oscillating over and under 900 for a few months now. Over, under, over, under. Looking at a shorter frame chart of 150 days, I am watching a break below this lower rising channel line. A retest of the 100d sma and the breakout level from 5/6/13 of $844 would be the first target. If the market overall keeps selling off, then I think it can test the support at $761.  If it holds instead and rallies back above the 50d sma, then it can easily be back in the 900's again. An easy trade back and forth.


Just a side note with $AAPL announcing a new iphone release. I think my wife's reaction to this news (a phone customer from the beginning and not an investor) sums it all up. "Yeah, it's about that time."  News that even the everyday customer already knows will happen and expects is not really news at all. Watch for a quick fade off this mornings gap up.

Happy Trading!

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