The market was looking forward to the earnings report from Apple Inc. (AAPL), the leader of all leaders. The anticipation was very high due to the news recently released from Google Inc. (GOOG), which was magnificent. Most thought AAPL would follow in their footsteps. The market was close to breaking out ahead of the report, but the big leader gave a small report for investors. A little shy this and not so great that, had the stock down at massive support at 119 last night after hours. It did hold there and start to push up a bit, which allowed for a big sigh of relief from the frothing bulls. A move below 119 on AAPL would open up a vein of selling to 114, and possibly further below. AAPL gapped down hard, roughly eight points, which gave the Nasdaq a major headache.

That said, the S&P 500 and other indexes were down much less. As the day wore on the market tried higher only to be rejected. That is, until the last half hour when it did rally decently off the lows. AAPL had a strong hollow candle although it still has major problems above in the form of moving averages and a strong gap down but it did print hollow while the market also closed well off the lows. A day the bulls will take hands down considering what AAPL had the potential to do the indexes today. I would consider this quite a bullish day overall. The bears got what they wanted but still failed to seize on a great opportunity. Earnings seem to be the place where they can do some damage and it was there for the taking today with AAPL's failure not to mention a big S&P 500lat from Microsoft Corporation (MSFT) as well. The market bent but definitely did not break today. Solid bullish action overall. The bulls still have a lot of hope that they'll get through S&P 500 2134 in time.

Froth took no time at all getting back on track. After a couple of weeks with the bull-bear spread slightly below 30% it blasted back last week, thus, yet another reading over 30% today with the actual number slightly over 33%. Not good but we're fairly used to this by now. Froth has been with us for the better part of the last eighty weeks. There was some hope with the all the choppy action we've been seeing that we'd finally get a strong, sustained move down but that was not meant to be for now. The bulls still very anxious to gobble up all moves lower. It seems it's going to take nothing short of a real Nasty bear for the bulls to give up their intense bullish behavior. If the market ever breaks out over 2134 with a bit of force it will take almost no time at all for the level to approach the unacceptable level of 40% once again. It never stays above that level for very long but for now we're at 33% which isn't good but not the deathly reading 40% can flash. The land of the froth is back in style.

There are broken areas of the market with the transports leading the way. Tomorrow morning we get the earnings report from railroad leader UUP. It's in a Nasty bear market thus hopefully things are depressed enough there that they can pull out a good report that will help the rails start to rock up thus bringing the transports with it. It can take only one stock to lead the masses out of the bear. The PowerShares DB US Dollar Bullish ETF (UUP) is the leader of leaders in that area so the bulls have their fingers crossed. We'll know the answer before the market opens up for trading in the morning. The semiconductors are also in the dog house but there's hope there this evening in the form of SanDisk Corp. (SNDK) and Texas Instruments Inc. (TXN). SNDK is another in a deep bear but it seems the market is liking their report this evening. TXN, another big cap leader in that area of the market is also up some this evening on their report. If those two can hold it can lift that sector out of its doldrums. SNDK is up quite a bit, almost 75 while TXN is up 1%. If they hold the gains over night and extend those gains tomorrow the bears will be very unhappy. Maybe the PowerShares DB US Dollar Bullish ETF (UUP) can add to the party.

We shall see as always.

Peace,

Jack

Jack Steiman is author of SwingTradeOnline.com ( www.swingtradeonline.com ). Former columnist for TheStreet.com, Jack is renowned for calling major shifts in the market, including the market bottom in mid-2002 and the market top in October 2007.

Mr. Steiman's commentaries and index analysis represent his own opinions and should not be relied upon for purposes of effecting securities transactions or other investing strategies, nor should they be construed as an offer or solicitation of an offer to sell or buy any security. You should not interpret Mr. Steiman's opinions as constituting investment advice. Trades mentioned on the site are hypothetical, not actual, positions.

Only logged in users are allowed to post comments. Register/ Log in

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2024 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.