Eye on Apple and Amazon

Despite today's downgrade by BTIG, the reactive weakness so far has NOT inflicted any meaningful damage to the overall Apple (AAPL) Point & Figure chart structure. To inflict preliminary damage, the stock must press to a PF print of 623, which should trigger downside continuation to test much more meaningful PF support at 619. A print of 618 will trigger near term sell signals, and WILL represent a near term PF top in AAPL.

Barring preliminary damage at 623, the otherwise very powerful PF uptrend in AAPL remain intact, with a next swing target of 650.00. MJP 4/09/12

Let's also notice that Amazon (AMZN) has corrected off of its recent upside breakout rally high at a 209 print, into the 192- 191 support zone, which thus far has contained the weak- ness. The stair-step decline exhibits a completed correct- ive pattern from 209 to 191.

As long as 190-188 support contains any forthcoming downside "over-shoot" selling pressure, the weight of techincal evidence in AMZN argues for entering, holding, maintaining long positions in and around current levels.

  • Action-Oriented Trade Set-Ups in Stocks & ETFs
  • Macro Analysis of the Broader Markets
  • Detailed Technical Guidance for each Trading Idea
  • Live Interaction w/ Mike & Our Member Community
  • And Much, Much More!
Join Now! - Special Offer!
Veteran Wall Street analyst and financial author, Mike provides detailed and timely analysis and trade set-ups on a range of markets. Read more...

Have Mike's “Out Front” morning analysis delivered FREE to your email inbox twice weekly!