{"id":60601,"date":"2022-07-16T22:15:00","date_gmt":"2022-07-17T05:15:00","guid":{"rendered":"https:\/\/drduru.com\/onetwentytwo\/?p=60601"},"modified":"2022-07-17T07:19:13","modified_gmt":"2022-07-17T14:19:13","slug":"apple-bear-market-tease-the-market-breadth","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2022\/07\/16\/apple-bear-market-tease-the-market-breadth\/","title":{"rendered":"Apple’s Bear Market Tease – The Market Breadth"},"content":{"rendered":"\n

Stock Market Commentary<\/strong> <\/h2>\n\n\n\n

Last week’s scene from the summer of discontent included hand-wringing over the June inflation report<\/a>. However, almost “quietly”, Apple Inc (APPL) pulled off a technical breakout contrary to the current bear market (especially for technology stocks). The previous week, AAPL confirmed a breakout above resistance at its 50-day moving average (DMA) (the red line below) but proceeded to drift and follow the still downtrending 50DMA lower. Last Thursday, AAPL soared 2.1% off 50DMA support. Friday’s 1.2% gain printed a firmer confirmation of the 50DMA breakout. AAPL was last this high 6 weeks ago. This move places Apple among the bear market green shoots<\/a> I described almost two weeks ago. However, with the NASDAQ still stuck in a bear market, this move also looks like Apple’s bear market tease. Is it too good to be true?<\/p>\n\n\n

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\"Apple<\/a>
Apple Inc (AAPL) printed two straight days of gains to confirm 50DMA support at a 6-week high.<\/em><\/strong><\/figcaption><\/figure>\n<\/div>\n\n\n

The Stock Market Indices<\/strong><\/h2>\n\n\n\n

The S&P 500 (SPY) ended the week with its third appearance above bear market territory in the last month. Apple’s bear market tease suggests to me that the index may finally be ready to challenge overhead resistance at its 50DMA. Still, I sold my latest tranche of SPY shares into the 1.9% gain to trim the bullish side of my short-term trading exposure. Will the third time really be the charm?<\/p>\n\n\n

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\"The<\/a>
The S&P 500 (SPY) jumped 1.9% to end the week punching its way out of bear market territory. Apple’s bear market tease helped wake up the index.<\/em><\/strong><\/figcaption><\/figure>\n<\/div>\n\n\n

The NASDAQ (COMPQ) is still limping along below 50DMA resistance. This churn really makes Apple’s bear market tease so tantalizing. The tech-laden index needs to contend with 50DMA resistance and then the recent double-top from the last two peaks.<\/p>\n\n\n

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\"The<\/a>
The NASDAQ (COMPQ) gained 1.8% and looks set for another challenge of overhead, downtrending 50DMA resistance.<\/em><\/strong><\/figcaption><\/figure>\n<\/div>\n\n\n

The drift downward for the iShares Russell 2000 ETF (IWM) took the ETF of small cap stocks right back to support at its pre-pandemic high. I am still clinging to a call option, so I am now looking for continuation to take IWM back to 50DMA resistance.<\/p>\n\n\n

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\"The<\/a>
The iShares Russell 2000 ETF (IWM) gained 2.1% in a bid to hold support at its pre-pandemic high.<\/em><\/strong><\/figcaption><\/figure>\n<\/div>\n\n\n