Market Recap - 7/21/2015

Today, the market pulled back and it should not be a surprise to anyone as it has been rising on negative breadth for some time. With the poor earnings results from IBM and UTX, the DJI ended the session with a loss of 1% or 181.10 points. The other market indexes also were down for the day, the SPX closed down -9.07 or -0.43%, the RUT loss -5.65 or -0.45% and the NDX loss -5.27 or -0.11%.

After the market closed, AAPL & MSFT reported their earnings and neither of them impressed the market. AAPL loss 7% or 8.87 in after hour and it could be the catalyst for the market to continue its pullback. The support level for the SPX and the NDX remains to be 2080 and 4562 respectively.

SPX

(click on the chart to enlarge)


NDX



Here are the charts for AAPL. The market has priced in a range of 125-137 for post ER move. Although the price of AAPL dipped below the 125 level in after hour trading, but this level could remain in play to close out all the strangle option players. The daily chart highlights the potential levels for support, and they are all in the proximity of the Fibonacci retracement zone levels, i.e. 38.2, 61.8 and the 50 (which is not a Fibonacci ratio).

Intraday:



Daily: