- In Trade Chatter
- Last Updated: 14 December 2012
- By LA Little
The indexes have reveled in the support Apple supplied them the last couple of years as it shot up from $300 to $700. Given its huge weighting it masked weakness in many a weaker stock. Now it is unwinding and the pressure being applied is down - not up. Today is no different as it prepares to attack the SPL with high volume for about 3 weeks past. That low is around $505. Volume is huge there so it will be hard to break it down. If it does though, there's not much more support between there and $400. Yes, some support around $475 but that's about it. Needless to say, Apple is a key problem and how it trades will have a lot to do with how the market trades given its dominance.
Elsewhere it doesn't look nearly as bad with the Federal Reserve buying up 100B worth of bonds and MBS each month. Nothing like a huge buyer to keep prices elevated.
So the story right now is what it always is. Will sellers step up and actually begin to sell something of size or will they disappear as price gravitates lower. Where is supply and demand. That's always the question and the charts let you gauge that on a regular basis using anchored support and resistance bars and zones.