The selling on SPY ended up exhausted at crucial fib levels marking the completion of an ABC move down which stops out all the weak hands and gets many traders short. We also came off oversold areas on the %R.
If momentum continues with this move to the upside then we can take out previous highs. If we fail then watch out - the 200MA is not far away and would be...
AAPL approaches it's 200 day SMA which in the past has been an area of support for this stock and doesn't stay near it for very long. Apple remains one of the best companies out there so it makes sense to stalk it as it enters this potentially reactive area.
Here in London there has been a serious amount of spending going on due to the Olympics and Visa were an official partner meaning every single transaction went through them so it's no coincidence that the chart is decent too.
Breaking out today with a new 20 day high on above average volume.
AAPL looks to be in the process of creating a Darvas Box between the 648 and 683 area. With this in mind there should be a level support area between 644 & 657.25. After more time it may be able to take another run at new highs bearing in mind the iPhone 5 release is imminent. In the meantime, let price lead the way and check your trailing stops. Trend remains up.