AAPL consolidated all day, isn't surprising for a friday and pretty much what we expected based on indecisive indicators. However, this time it closed at an all time highs, therefore it is a significant achievement. Previously I've said that for Monday, AAPL should be allowed to finally have fun/run (non consolidation day). It would not surprise me if we divert from following SPY, since SPY is short-term overbought; 60min RSI is 76+, which means an immediate pullback on Monday is a possibility.
AAPL is likely to do a gap up and go. When AAPL closes at resistance and in an intermediate uptrend, it suggests a high percentage chance for a gap and go. It would be a higher percentage if the overall market were in the same position. In this case, SPY is overbought so not as high. (If somehow we have a big gap down then look to see if it holds the uptrend channel lines.)
*Gap and go, in this case means gap up and dip to 5min 20EMA and rocket up or just slowly grind up all day long.
SPY
Not much to say about SPY really, it went according to plan; small up and down for the entire day. It is overbought now on 60min chart, but not at pure extremes yet. (60min chart RSI 80 or above would be the extreme overbought condition). Immediate pullback on Monday has chances, the latest by Tuesday if Monday is another flat day like Friday.
Here's what we said on Thursday: The Sept Monthly 130 Puts, we will probably have to take the loss on
Sept 10 or 11th, have to adjust to market dynamics. SPXU shares will
keep for swing.
That is still the plan for now and we will adjust accordingly.
-Red Apple
