Yesterday looked like any other day over the last month. The markets were floating higher on extremely light volume. A major breakout looked inevitable with the SPDR S&P 500 ETF (NYSEARCA:SPY) taking out the former 52 week highs of $142.21 hit on April 2nd, 2012. The early morning blast catapulted the markets to a high of $143.09 by 10:30am ET.
As the markets ripped higher on the mid-August day, leading stocks were in charge. Apple Inc. (NASDAQ:AAPL) and JPMorgan Chase & Co. (NYSE:JPM) both jumped higher in dramatic fashion. Apple climbed to new all time highs the euphoria was palpable.
The bulls began to giggle with delight as the bears began to cry and throw in the towel. The media continued to pump the hype to the average investor. Just as bullish sentiment hit a max high, a possible major reversal occurred. It was only possible because the markets had not closed yet, and therefore did not know the final conclusion of the day. However, the reversal that took place started with Apple and trickled down to the S&P 500 and all other stocks.
Apple hovered $16.00 off its high of the day and went negative. In addition, the SPY retreated to the major double top level from April 2012. A close below this level and the market should have a top in place. A close above, and smart technical traders must continue to look for a pivot top.
This is how true traders and investors work. They avoid the Wall Street hype and focus purely on the charts. By doing this, the profits flow.
- English (UK)
- English (India)
- English (Canada)
- English (Australia)
- English (South Africa)
- English (Philippines)
- English (Nigeria)
- Deutsch
- Español (España)
- Español (México)
- Français
- Italiano
- Nederlands
- Português (Portugal)
- Polski
- Português (Brasil)
- Русский
- Türkçe
- العربية
- Ελληνικά
- Svenska
- Suomi
- עברית
- 日本語
- 한국어
- 简体中文
- 繁體中文
- Bahasa Indonesia
- Bahasa Melayu
- ไทย
- Tiếng Việt
- हिंदी
Alert: Markets Reverse, Major Level Now In Focus
Published 08/22/2012, 12:54 AM
Updated 07/09/2023, 06:31 AM
Alert: Markets Reverse, Major Level Now In Focus
Latest comments
Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.