Always consider hidden risks
SPY ETF/Apple Shares:  Good Earnings but Not Good Enough?
​July 27 2016 ( From TradingView, CNN Money  )
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The Situation

​​​The market participants never gave attention to that two ​Wedges 
​technical pattern on a weekly basis on SP500 Index ​(SPY ETF)
​and Apple Shares​.

​​In the case​ SPY ETF, we were within a Weekly Rising Wedge that 
started back since August 18 2015.​ It was broken on the upside
​on July 4 week. 
​(See First Chart Below - Thick Red TrendLine - Ellipse)​

The SPY ETF is making on a weekly basis higher lows and higher
(See First Chart Below)​

In the case of Apple Shares, ​we are still within a Weekly Falling Wedge
​that​ started back since October 13 2014 as, at time of writing this
​morning in the pre-opening market at the $102.47 level.​

​​(See Second Chart Below - Thick Red Trendlines)​ 

Apple Earnings were above Expectations
​(​Apple Reports Third Quarter Results) but the question is:
​Are those Good Earnings Good Enough for a Weekly Breakout​ at the $104.40 ish zone?

(See Second Chart Below - Top Red Trendline - Ellipse)​

And few of us realize that in fact, Apple Shares are under performing tremendously the SPY ETF on a relative basis (ratio of AAPL vs SPY ETF - Daily Chart) since April 14 2016 when it reached the resistance trendline of a downtrend channel and broke soon thereafter the major support trendline that started back since June 28 2013! ​(See Third Chart Below - Red TrendLine - Ellipse)
At the .472 level in pre-open, the ratio is still far from the 200 DMA (Day Moving Average at .509. (See Third Chart Below - Green Line)

So Apple Earnings were finally very Good News but Bulls still face a challenge for a Real Weekly Breakout above the $104.40 ish zone...


"To fight and conquer in all your battles is not supreme excellence; supreme excellence consists in breaking the enemy's resistance without fighting."

-Sun Tzu, the Art of War

 SPY ETF/Apple Shares: Good Earnings but Not Good Enough? $SPY, $AAPL  #Trading #investing #aapl #SP500
SP500 Index
​(SPY ETF - Weekly Candles)

Daily Ratio
Apple Shares ( AAPL )
SP500 Index ( SPY ETF )​​
​​20 DMA ( Yellow Line )
50 DMA ( Red Line )​​
200 DMA ( Green Line )​
Apple Shares 
​(AAPL - Weekly Candles)