Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
For reasons that make little sense the market seems to really like/dislike round numbers. We just saw the DJIA tag 13,000…. 13000.84 to be exact. Along with the 2011 high of 1370ish very near let’s see if this serves as any form of resistance how long it takes the market to chew right through this level.
On a side note, let me say I am in awe of Apple – last Wednesday it printed the type of reversal on the chart that is normally the kiss of death. Usually the type of move that marks a top that lasts for months. Here we are a few sessions later and it is already back within sniffing distance. We’re just in one of those moves where a lot of technical analysis is moot… I have also seen a series of earnings misses that print horrid drops on charts, breaking resistance – on high volume (i.e. avoid avoid avoid or short short short)… only to be bought furiously in the following days, and often making new highs within weeks. If you can’t short earning misses on high volume breakdowns – you really can’t find much to short at all.
Very abnormal behavior and right now the textbook is a hindrance not a help.
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