Apple (NASDAQ:AAPL) led the market higher today after a tumultuous open with many stocks opening up in the red only to finish deep in the green. The SPX continues to power higher amidst strong earnings with the SPY ETF notching another new all time high today with 73.94M shares changing hands on Monday as cautious sellers rebalance portfolios. Investors aggressively bought the dip with the widely followed benchmark SPX making new all time highs as the US stock market continues to make records.
The cup and handle pattern mentioned in the Day Traders Journal back in April outlined a potential cup and handle pattern that became especially true on the breakout above the neckline,
Here's the visual:
The measured move of the cup and handle pattern for AAPL suggests a move up to $161.
Now with the widely followed benchmark breaking out to new highs today the next breakout level to watch is for a decisive break (and close) above $449.which would increase the likelihood of a Fibonacci extension confluence of $464 or +4.1% higher. Investors using a typical Stop loss of 442.4 would risk a profit/loss ratio of 4:1 should price extend the gains to that level, minor resistance is also near 447.3 or 0.51% higher with Fibonacci support confluence near 433.7 or -2.6% lower.
The S&P 500 has been traveling in an ascending channel since the beginning of the year and now is beginning to develop bearish divergences between relative strength, price and the PMO. Any test of 449 level however would likely alleviate the divergence and negate the ascending wedge pattern that has been developing during the low volume of this past summer