The markets are having a solid snap back rally. The SPDR S&P 500 ETF (NYSEARCA:SPY) is trading at $137.08, +1.24 (+0.91%). A bounce like today is largely expected by intelligent investors as the buy the dip mentality is still alive and well. In addition, European markets did close higher on the day, thus giving the U.S. markets a sigh of relief. The earnings report from Alcoa Inc. (NYSE:AA) also helped the markets bounce. Be aware, the technical damage has been done to this market. While snap back rallies will happen, further downside is likely in the coming days and weeks.
Stocks are mostly higher today though some are weaker than others. A rare change of pace has Apple Inc. (NASDAQ:AAPL) weaker than the overall market. The stock is trading at $628.89 +0.45 (+0.07%). The simple minded investor would think the weakness is because the DOJ is set to file a lawsuit against Apple over price fixing. However, the pro traders realize that Apple had a reversal candle on the daily chart with major technical damage. The stock as overbought, downside is likely from here contrary to the media and analyst hype.
Starbucks Corporation (NASDAQ:SBUX) is very strong today, making a new 52 week high. This stock continues to be on a major run, regardless of the weakness in the market. The next technical level of resistance is at $60.15. Starbucks is currently trading at $58.74, +1.96 (+3.45%).
Gareth Soloway
InTheMoneyStocks
