I expected the current Israeli / Hamas conflict to generate more selling as the geopolitical consequences of that currently dangerous instability could be substantial. This weekend could see either an escalation of rocket launching or a calming of tensions. Considering the history of this conflict an easy resolution is unlikely. As a result, we may see some more than usual risk avoidance selling at the end of the day and ahead of the weekend.
Apple hit my 525 support target yesterday and is down another $14 today to $ 511. The next support level is quite a ways down...not a good omen.
We've been seeing a selling pattern where the market attempts to gain traction and then sells off the rest of the day (also known as the Pop and Drop). The 30 minute bar chart of the NYSE advance/decline line (NYAD) is one way to see this pattern clearly and the last 11 days of NYAD action are shown below to illustrate.
