The DJIA, S&P500, and Nasdaq have all met proposed upside targets. As of late the S&P 500 and Nasdaq are more representative of Apple than the overall market. Nevertheless, until the upside bias is broken the complete bearish argument must remain off the table. One should expect the usual triple digit rally mid-week, however, should the rally fail to materialize the following scenarios are likely to occur. Scenario 1 Minor short term drop: The markets turn to the dark-side... expect DJIA 13150-13050 with moderate support at 13000, S&P500 1390-1384, with moderate support at 1375, Nasdaq 3020-3014 with moderate support at 2990. Scenario 2 Moderate short term drop: DJIA, 12815 S&P 500 1355, Nasdaq 2950. Scenario 3 Major short term drop: Would predicate on the DJIA breaking the rising wedge which would occur with a drop below 12730. S&P 1340, Nasdaq 2800. Even if this scenario does occur, there is a likelihood of a short term bounce, barring major Geo-political events...it is at this point where the bearish argument may be entertained. The real question focuses on US Treasuries and Bernanke's will to fight off the bond vigilantes. Not really a question of if, just a matter of when will he make his next move. In any event short term trading opportunities abound. For those interested in some longer term plays VE, RIG, and TBT offer some compelling opportunities. Pullbacks should be seen as longer term buying opportunities in these plays. Good luck and good trading.
Twitter: UMS1895
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