In the second market update today I wanted to explain why something that doesn't look very troubling can quickly turn, if there's one thing about a choppy market like we have sen the last week or so, it's that things can change pretty quick.
AAPL looked pretty darn good this morning, not too many reasons for concern, here's how fast a divergence can migrate if the underlying activity is there and suddenly threaten the outlook. I'm not trying to say that things have gone that far for AAPL, it's just they have moved quickly.
The 10-15 min charts are pretty important timeframes and they are positive for AAPL, which fits right in with our analysis earlier in the week that AAPL was likely to see symmetry in the price pattern and make a second shoulder which it started yesterday, or so it appears. This timeframe is still healthy, it is still where the probabilities are.
However look how fast the 2 min intraday chart turned down, killing any momentum to the upside.
That migrated to the 3 min chart fairly quickly with a relative negative and a leading negative divergence.
And now the 5 min chart is seeing the migration of that negative divergence, "IF" the 5 min chart gets ugly, then it will almost certainly move to the 10-15 min timeframes which are the ones supporting AAPL's move higher, even if it is only to put in a second shoulder. A H&S top isn't a H&S top until it's complete, at any time a broadening top can break first.
No comments:
Post a Comment