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Home / Technology / A warning from Apple is going to make this market less overbought very quickly

A warning from Apple is going to make this market less overbought very quickly



It was a day of mild gains, but it was much better than it looked like the indexes jumped back from a very poor open and saw some intraday dip buy as well. Internal measures improved nicely and there were 4,800 25,000 decliners at close range. There are still not many stocks near heights, but it is not a surprise given how far the indices have fallen.

There were some signs of the "January effect" today, which tends to buy stocks that have been knocked down due to the sale of tax losses. Many small cloaks came from their low as sales pressure was relieved and dealers began to shop a little.

The biggest problem the market is facing now is that S & P 500 is up 6.8% since it hit Christmas Eve. It has gone from rough oversold to something overbought and can use some consolidation. Of course, there are some optimists who are looking for a V-shaped move, but they ignore how badly many market players were recently uprooted. It is a supply of people who will be happy to escape this market if they can get back some recent losses.

I expect a withdrawal, and it looks like we can get the catalyst to look after what Apple (AAPL) cuts first quarter guidance. Expected revenue is lowered to $ 84 billion from analysts' estimates of about $ 91

.5 billion.

This news is not unexpected. The inventory has already fallen $ 75 from the highlight, but the question is to what extent this is already priced. The stock is stopped as the news is digested, but Nasdaq 100 ETF (QQQ) trades down 1.4% after hours.

Market players are going to worry now that more warnings are on deck. It has been a good bounce over the last 4 trading days, but now it becomes much more difficult

Have a good evening. I'll see you tomorrow.

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