Apple poised to break from this pattern!


The worlds largest company has been rather quiet the past 4-months! The table below highlights that Apple has mostly traded sideways of late and its down a little over 1% since February 23rd.

performanceapplespy4monthsjune23CLICK ON CHART TO ENLARGE

Is this sideways action about to end? It looks like it from a Power of the Pattern perspective!

applesqueezeinplayjune23CLICK ON CHART TO ENLARGE

The sideways action of the past four months in Apple is reflected by the blue shading in the chart above. Four months ago Apple hit the top of this rising channel. The sideways action of the past 4-months now has Apple at the bottom of this rising channel and now facing short-term falling resistance at (1) above.

Either a bounce off support and a breakout above short-term resistance is about to happen or a break of rising channel support that has been in play for the past year will take place.

With Apple being the largest company in the S&P 500 (4% of the index) what Apple does at (1) above could have a big influence on what the S&P 500 does next.




Small and Micro caps performing big, hit all-time highs

russellmicrocapalltimehighsjune22CLICK ON CHART TO ENLARGE

Even though the S&P 500 isn’t setting the world on fire performance wise this year, Small and Micro caps closed out last week at all-time weekly closing highs. The table below looks at performance year to date, reflecting that Micro and Small are acting big on a performance basis, compared to the S&P 500.

performanceiwcrussellspyjune22CLICK ON CHART TO ENLARGE

Micro Caps (IWC) of late are now pushing above March 2014 highs, which is a positive sign for them.

Strength in the US Dollar could be hampering gains by large caps over the past 6 months. Small and Micro Caps aren’t influenced too much by this factor.

Much of the world seems to be focused on what is happening in Greece, yet the message coming from Small and Micro Caps might be just as important for the future direction of the stock markets in the states.






Shanghai Index- 8th worst weekly decline in its history!

joefridayshanghaideclinejune19CLICK ON CHART TO ENLARGE

Joe Friday Just The Facts… The Shanghai index has had a rough week, down 13.32%. This was the 8th worst weekly decline in the past 25-years.

Any reasons this could be happening? Below looks at the Shanghai index over the past 20 years

shagnahi52weekrateofchangeatresistancejune19CLICK ON CHART TO ENLARGE

Over the past 52 weeks, the Shanghai index was over over 130%. This huge gain was only surpassed by the rally into the 2007 top. The Shanghai index met dual resistance this week, one of them was at the top of a 20-year channel and a resistance line drawn off key lows in 2006 and 2009.

Could this weakness spill over into markets in Europe and the States? This could be important as markets in Germany, London and France are breaking key support lines. See breakdowns in Europe HERE