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Time For A Swing Downward

January 9, 2012, 4:40 pm




It's high time I updated this blog. We were looking at charts over the holiday break, and reckoned stocks would straggle upward for a while, but soon would touch previous highs (or resistance levels) and would swing downward again. This seems to be exactly what's happened, at least the part about "straggling upward". The downward swing will probably start tomorrow.

AAPL makes a great proxy for the overall market, and there was a Climax High sell signal today in AAPL as it reversed downward from around 420. This has become an established resistance level; there was a sell signal and a downswing a few months ago, and also new 52-week high before that that lead to a downswing, all from around the same price.

The Climax High sell signals are shown on the chart below in red, with arrows pointing at them. The new high from the same price is shown in bright green over by the left edge of the chart. I drew in a horizontal line at 420 to illustrate the "resistance level" that's formed.

Here's the chart: annotated stock chart for Apple Computer




Category: sell signals, signals on stocks, stock market analysis