What a difference a day makes. The SP500 finally resolved itself toward the downside by breaking its August low. Now it is a matter of how low will it go before it can find support. From the daily, there could be a minor support near 1060 then the major support level to be tested is 2009’s August low near 1040. This is only 40-60 points away from today’s close. With current volatility, it can reach that level in one to two trading sessions.
When the last chip standing such as AAPL begins to roll over, that could be an indication the market is entering a capitulation phase. From AAPL price chart, if it breaks below 360 and the March 2009 trend line, capitulation could be near if not already occurring. Will be watching to see what kind of a bounce AAPL will receive after its iPhone 5 announcement tomorrow, this could be a clue on what’s to come.
