Worst than expected company earnings from Google, GE, McDonald, ...etc. plunged Dow Jones Industrial Average for more than 200 points on Friday and wiped out the gain from the first four days of the week. S&P 500 index closed the week at 1433, up 0.32%. Dow Jones Industrial Average gained 0.11%, and Nasdaq composite decreased 1.26%.
S&P 500 index closed this week at the lower end of the trading channel again. The index tried to break through the top of the channel early in the week but did not succeed as the momentum is declining. More companies will report earnings next week. Judging from the earning news so far, we may see more volatility on the downside.
As many companies' stock prices are punished by the bad earning news, weekly chart of Apple which everyone is talking about these days turns interesting. Since 2009, stock price of AAPL has bounced off its 28 week moving average every time it touched or dipped below. We can see that this happened a couple of times in 2010 and 2011 from the chart below. Apple's price has come down from the recent high of $705 to $609, a bit below its 28 week MA right now. This may turn out to be an opportunity for people who have been wanting to get into Apple.
1 comment:
Excellent charts
Post a Comment