$AAPL : Watch the doji

AAPL scored a new high yesterday going as far as $422. However, the finishing is weak and it closes down at $413.

Overall the general market sentiment is still bearish with the SPX failing to breach 1227 yesterday and closing down as well.

If AAPL is a leader and indicator for the general market, then yesterday’s price action ending with a doji is worth taking note of.

This is a possible reversal. Stay nimble.


S&P 500 (SPX) : Ichimoku Chart Review as of June 15, 2010

Yesterday, the market scores a follow through the 3 indices going up by more than 2 percent.

On the Ichimoku Daily Chart, we can see that the SPX close above the Kijun sen (trendline).

At this rate, there is a possibility that SPX may pierce through the kumo resistance at around 1040 before June 28.

Do note that there aren’t much news that push the indices up yesterday. So, likewise, any bad news can sent them tumbling down as well.

What I would like to highlight is the possible development of a head and shoulder on the Daily Chart.

If SPX goes to around 1050 and reverse and stay below the kumo, be prepared for a very nasty downwards drop.

A head and shoulder confirmation could sent the SPX going as far as 880.

1. To get the target price, subtract the top of the head from the neckline (ie 1220 – 1050 = 170)

2. From the neckline (around 1050), subtract 170 and we will get 880.

Incidentally, 880 is a level around the kumo support on the Weekly Chart.


3PAR (PAR) : Long legged doji (Possible reversal)

Spotted a long legged doji yesterday which signals a possible reversal may be coming soon for 3PAR.

After all, it has run up a fair bit  since the speculation of it being acquired.