AAPL(Apple): 4-1/2 year long-term trendline caps the 6-month rise; Clearing the 475 level decisively is key to further gains; Breaking below the 510 area weakens

Dow Jones Industrial Average (DJIA): Ongoing correction on the daily chart eyes 50 day MA or lower; Tested 14-year long-term trendline resistance before ranging

 

The daily chart: DJ just confirmed a lower high at 16058, triggering further weakness towards the 50 day moving average. Below there would open the 15445/15284 retracement levels ahead of the crucial 200 day ma.



The long-term perspective on the monthly chart:
DJ stalled at the November 16175 peak, right on the 14-year rising trendline resistance which connects the 2000 and 2008 peaks. This suggests consolidation may follow. The next key support is in 14551 area.

S&P 500 Index formed a 4-week double top; targeting 50 day moving average then key retracement level

SP formed a 4-week double top at 1813.6/1811.5 on the break below the 1777.2 support. Near term, the 50 day MA seems to be the next logical support/target. Below there is the double top equality target at 1744.0 and then the 50% retracement of the rise from the October low is at 1730.0.

S&P 500 Index forming potential bearish divergence as of 12/10/13 (Tuesday)

SP500 is forming potential bearish divergence as shown in the daily chart. A break below the 1779.09 swing low is needed to confirm it.

The 20-day MA at 1795.55 has been supporting the minor pullbacks since last November.

Therefore, the 1795/1779 support area is key.

While this support zone holds dips, there is scope for new highs.

If this area is broken to the downside, then the 50 day MA at 1756.48 is the next support. That is about a 3% pullback from the 1813.55 high.