The S&P / ES, Russell 2000 /TF and Nasdaq 100 / ENQ traded to or near critical downside KRAs (Key Reference Areas) yesterday, and for the second time in three days generated Breadth readings among the most negative this year. In a bull trend this implies any downside below this week’s lows should be limited and higher highs in at least one or two of the indices should soon occur. The key words: “in a bull trend”. The next few days will be important in determining if there has been a potentially significant change in trend.

Apple has confounded market watchers and especially fundamental analysts (shocking, right?) since its high. It is in a bear trend. It has traded into a KRA, but there is another level just below 395 – 367 at 341 – 320 that could easily be reached before any significant retracement occurs. Apple has to show strength above 463 to signal any potential for significant upside.