The market finished in the red for the second straight day as they S&P broke down through its 21-day moving average. Yesterday we talked about the importance of that level in order to maintain the very bullish composure of this rally, and now it appears the S&P will eventually retest its 50-day MA.
Apple (NASDAQ:AAPL) continued its pull-in from historic highs over $700, finishing the day down 1.24%. The stock fell sharply through its 21-day MA yesterday, a sign that a deeper retracement was in the offing. The next level to watch is support at $656, and then the 50-day MA that currently stands at $647.
Google (NASDAQ:GOOG) tried to drag the market higher in the late morning and early afternoon, but ran out of steam in the last hour. GOOG still finished the day up 0.57% This stock still doing well, even despite yesterday’s topping tail. After a nearly 200 point run to all-time highs over the last two months, the stock deserved a bit of a break. Look to buy this stock going forward on dips.
The next support level to watch in the S&P is 1418-1426, but the 50-day moving average (which currently stands at 1409) seems like it could come into play.
By Pete Renzulli
Disclosure: Pete Renzulli has no positions