This market has been stuck in a tight range, and, the volume is getting lighter and lighter. You know what that means! A big move is coming! Of course, the question is "Which Way?" Well, this market has tested SPX 1420, but, was not able to break above. Just last week, it came down to test 1400, but was unwilling to go much below. Buyers have been waiting to buy at every pullback. However, nobody seems to be willing to stick his neck out before hearing from Bernanke on Friday.
Techs (Nasdaq) are still looking healthy, but, the board market (SPX) and the blue chips (the Dow) are beginning to show signs of weakness. In Asian, China has been really weak and continues to slide lower. Tonight, Hong Kong has begun to break down.
Perhaps the market does want to see a pullback. SPX 1400 to 1390 will provide the initial support.
On the US side, major market indices closed in the green today, although just barely. GOOG made a fresh new 52-week high at $688.99. This is after falling down to $660 just 2 days ago on Apple (AAPL) winning a lawsuit against Samsung. Two days later, investors seem to have all but brushed aside the significance towards Google, as Samsung vows to fight against the verdict. In addition, just today, Samsung introduced a new pen-equipped smartphone running GOOG’s Android, sending GOOG shares up more than $10, hitting that $688.99 intraday.
Technically speaking, AAPL does look toppy. Comparing to AAPL, GOOG has a lot more room to run. AAPL may need to see a pullback before running any further. On the other hand, GOOG is a little hop away to hit $700 first.
We’ll have to see how the market behaves tomorrow. The weakness in Asian may affect the US in the morning. But, if buyers continue to come in on weakness and hold this market in a tight range, we may just see GOOG test $700 in the next couple of days!
Good night and HappyTrading! ™