What Does Apple Tell Us About the SPY?
Support broken tends to act as resistance.
That is a basic concept of technical analysis and after $AAPL broke support ~655, the stock sold off to ~625 and then rallied back up to that level of prior support. Sellers quickly came in and took control of the stock in that prior support area and the yellow highlighted area on the chart shows the subsequent action.
Today’s rally in the $SPY brought the market back up to the scene of the break below the prior support level of 143-143.50 It will be interesting to see if the short term trend is strong enough to overcome this prior support area or if it does in fact act as resistance and the $SPY continues lower.