Friday was a rough day for the country, and many people’s attention was focused on the news rather than the stock market. That said, the markets do continue and it was another day of selling, led by another round of very poor action out of Apple (AAPL). As for the indexes the S&P 500 dropped 0.41% and the NASDAQ 0.70%. The main headline of the day economically was some positive Chinese “flash” (preliminary) purchasing managers data for the month, which drove Chinese stocks up more than 4%.
In the U.S. the S&P 500 continued to be stuck in the range shaded in yellow – there is a lot of congestion to work through and until that happens, a restrained eye towards the market remains in place. If we see the market fall back below this range in the coming weeks, there could be broader issues ahead.
We can see this week’s action has left the NYSE Oscillator and almost perfectly neutral.
Here is a chart of the Shanghai index
Apple fell nearly 4% after UBS cut its target price on the tech giant to $700 from $780, citing signs that the iPhone’s production rate is declining and adding that iPhone 5 sales in China may not do as well as the previous model. Technically you can see the stock revisited the mid November lows, which is not a good sign. While there might be a short term technical bounce at those levels the condition of this chart remains very poor.
On the commodities front, copper is the best performing indicator as gold and oil have stagnated.