lots of bears

Here is a pair of charts which illustrate the extent of bearish sentiment prevailing in the market now.

The top chart shows the  weekly reading (blue line) and its five week moving average (red line) of the AAII investor sentiment survey. The numbers shown on the graph are the percentage of bears divided by the sum of the percentages of bears plus bulls (so neutral opinions are ignored). You can see that both numbers now are at levels last reached at the 2010 and 2011 low points.

The chart right above this post shows the 10 day moving average of the equity put-call ratio on the CBOE. At the May 21, 2012  low point this moving average had reached the high points last seen at the 2011 lows thus showing that the volume of put trading had risen to high levels relative to the volume of call trading. This in turn is an indication of unusually high levels of bearish sentiment.

That trader sentiment is so bearish is remarkable because the drop from the March-April highs in the Dow and the S&P has been less than half as big in percentage terms as the 2011 break. The modest size of this latest break is telling us that the market thinks it has already discounted the worst that is likely to happen in Europe, and in fact did this last year. But people are responding to the news from Europe in the papers today more that the action of the market itself. This is an example of traders "fighting the last war", not the one they currently face.

I think this bearish sentiment is telling us that a big rally is imminent and will probably take the averages to new bull market highs.

Guesstimates on May 31, 2012

June S&P E-mini Futures: Today's range estimate is 1302-1314. The October 2011 top at 1289.25 is strong support. I think a base building period is underway.  Once it is completed the next sustained swing will be upward to new bull market highs.

QQQ:  Support now is at 59.50. The drop from 68.50 is nearly over and should be followed by a move to new bull market highs.

TNX (ten year note yield):  The 10 year yield is back to the low of its recent multi-month trading range. I still think that the 10 year yield has started a move to  3.00%.  

Euro-US Dollar: The Euro has reached 126.00 support.  I think the market will drop to 1.2250 before any rally of more than 200 pips develops.  

Dollar-Yen: This market is headed for 75 and lower.

July  Crude: The market is headed  down to  75.   

GLD – August Gold:   The market has dropped to the vicinity of the September and December low points at 1544 and 1529. I think a sustained up move is about to start.  

SLV - July Silver: The market is getting close to its December low at 26.27 where a sustained move up is likely to start.

Google: Google broke support at 590 and is now headed for its January low at 562. From there the market should resume its move up to 750.

Apple: AAPL is headed for 520. From there  a move above the 644 high will start. 

Guesstimates on May 30, 2012

June S&P E-mini Futures: Today's range estimate is 1311-1325. The October 2011 top at 1289.25 is strong support. I think a base building period is underway.  Once it is completed the next sustained swing will be upward to new bull market highs.

QQQ:  Support now is at 59.50. The drop from 68.50 is nearly over and should be followed by a move to new bull market highs.

TNX (ten year note yield):  The 10 year yield is back to the low of its recent multi-month trading range. I still think that the 10 year yield has started a move to  3.00%.  

Euro-US Dollar: The Euro has reached 126.00 support.  I think the market will drop to 1.2250 before any rally of more than 200 pips develops.  

Dollar-Yen: This market is headed for 75 and lower.

July  Crude: The market is headed  down to  75.   

GLD – August Gold:   The market has dropped to the vicinity of the September and December low points at 1544 and 1529. I think a sustained up move is about to start.  

SLV - July Silver: The market is getting close to its December low at 26.27 where a sustained move up is likely to start.

Google: Google is now headed for its 2007 top near 750. Support is at 590.    

Apple: AAPL is headed for 520. From there  a move above the 644 high will start. 

Guesstimates on May 29, 2012

June S&P E-mini Futures: Today's range estimate is 1316-1329. The October 2011 top at 1289.25 is strong support. I think a base building period is underway.  Once it is completed the next sustained swing will be upward to new bull market highs.

QQQ:  Support now is at 59.50. The drop from 68.50 is nearly over and should be followed by a move to new bull market highs.

TNX (ten year note yield):  The 10 year yield is back to the low of its recent multi-month trading range. I still think that the 10 year yield has started a move to  3.00%.  

Euro-US Dollar: The Euro has reached 126.00 support.  I think the market will drop to 1.2250 before any rally of more than 200 pips develops.  

Dollar-Yen: This market is headed for 75 and lower.

July  Crude: The market is headed  down to  75.   

GLD – June Gold:   The market has dropped to the vicinity of the September and December low points at 1544 and 1529. I think a sustained up move is about to start.  

SLV - July Silver: The market is getting close to its December low at 26.27 where a sustained move up is likely to start.

Google: Google is now headed for its 2007 top near 750. Support is at 590.    

Apple: AAPL is headed for 520. From there  a move above the 644 high will start. 

Guesstimates on May 25, 2012

June S&P E-mini Futures: Today's range estimate is 1308-1322. The October 2011 top at 1289.25 is strong support. I think a base building period is underway.  Once it is completed the next sustained swing will be upward to new bull market highs.

QQQ:  Support now is at 59.50. The drop from 68.50 is nearly over and should be followed by a move to new bull market highs.

TNX (ten year note yield):  The 10 year yield is back to the low of its recent multi-month trading range. I still think that the 10 year yield has started a move to  3.00%.  

Euro-US Dollar: The Euro has reached 126.00 support.  I think the market will drop to 1.2250 before any rally of more than 200 pips develops.  

Dollar-Yen: This market is headed for 75 and lower.

July  Crude: The market is headed  down to  75.   

GLD – June Gold:   The market has dropped to the vicinity of the September and December low points at 1544 and 1529. I think a sustained up move is about to start.  

SLV - July Silver: The market is getting close to its December low at 26.27 where a sustained move up is likely to start.

Google: Google is now headed for its 2007 top near 750. Support is at 590.    

Apple: AAPL is headed for 520. From there  a move above the 644 high will start. 

big up move ahead

Here is a daily bar chart of the  cash S&P 500 covering the past two years' activity. I think the market has dropped into a very strong support zone (green oval) and is about to begin a sustained up swing which will take it to new bull market highs.

The first thing to notice is that the drop from the April top has now just about equaled the size of last year's November break (blue dash rectangles). This correction has at the same time dropped the market down to strong support which is found at its October 27, 2011 top (green dash line). The S&P is also trading on top of the lower channel line of the purple up trend channel I have drawn on this chart. Finally the market is sitting on top of its rising 200 day moving average (wavy red line on the chart).

I think trader sentiment is quite bearish, comparable to the bearish sentiment extreme seen at last October's low. My five week moving average of the percentage of bears relative to bears plus bulls as reported weekly by AAII is now at its October high point. The moving averages of the equity put-call numbers on the CBOE are also at or past their October highs.

Of course there are plenty of reasons to be bearish here and most of them center on the European debt situation. The market is discounting potential trouble from the other side of the Atlantic. One interesting thing is that the levels of bearishness I see are comparable to those at last October's low even thought the current decline has so far been less than half as big in percentage terms as last year's drop.

All in all it looks to me like the S&P is set up for a big reversal to the upside. I still think this is a bull market - witness the rising 200 day moving average atop which the market currently sits. So my expectation is for a move at least into the high 1400's over the coming months.

Guesstimates on May 24, 2012

June S&P E-mini Futures: Today's range estimate is 1312-1330. The October 2011 top at 1289.25 is strong support. I think a base building period is underway.  Once it is completed the next sustained swing will be upward to new bull market highs.

QQQ:  Support now is at 59.50. The drop from 68.50 is nearly over and should be followed by a move to new bull market highs.

TNX (ten year note yield):  The 10 year yield is back to the low of its recent multi-month trading range. I still think that the 10 year yield has started a move to  3.00%.  

Euro-US Dollar: The Euro has reached 126.00 support.  I think the market will drop to 1.2250 before any rally of more than 200 pips develops.  

Dollar-Yen: This market is headed for 75 and lower.

July  Crude: The market is headed  down to  75.   

GLD – June Gold:   The market has dropped to the vicinity of the September and December low points at 1544 and 1529. I think a sustained up move is about to start.  

SLV - July Silver: The market is getting close to its December low at 26.27 where a sustained move up is likely to start.

Google: Google is now headed for its 2007 top near 750. Support is at 590.    

Apple: AAPL is headed for 520. From there  a move above the 644 high will start. 

Guesstimates on May 23, 2012

June S&P E-mini Futures: Today's range estimate is 1291-1307. The October 2011 top at 1289.25 should prove to be strong support. I think a base building period has started and that the end of the drop from 1419.75 is imminent.

QQQ:  Support now is at 59.50. The drop from 68.50 is nearly over and should be followed by a move to new bull market highs.

TNX (ten year note yield):  The 10 year yield is back to the low of its recent multi-month trading range. I still think that the 10 year yield has started a move to  3.00%.  

Euro-US Dollar: The Euro has rejected the 1.3300 resistance level. The market is headed for 1.2600.

Dollar-Yen: This market is headed for 75 and lower.

July  Crude: The market is headed  down to  75.   

GLD – June Gold:   The market has dropped to the vicinity of the September and December low points at 1544 and 1529. I think a sustained up move is about to start.  

SLV - July Silver: The market is getting close to its December low at 26.27 where a sustained move up is likely to start.

Google: Google is now headed for its 2007 top near 750. Support is at 590.    

Apple: AAPL is headed for 520. From there  a move above the 644 high will start. 

Guesstimates on May 22, 2012

June S&P E-mini Futures: Today's range estimate is 1305-1322. The ES has reached the level of the October 2011 top at 1289.25 and this should prove to be strong support. I think a base building period has started and that the end of the drop from 1419.75 is imminent.

QQQ:  Support now is at 59.50. The drop from 68.50 is nearly over and should be followed by a move to new bull market highs.        

TNX (ten year note yield):  The 10 year yield is back to the low of its recent multi-month trading range. I still think that the 10 year yield has started a move to  3.00%.  

Euro-US Dollar: The Euro has rejected the 1.3300 resistance level. The market is headed for 1.2600.

Dollar-Yen: This market is headed for 75 and lower.

June Crude: The market is headed  down to  75.   

GLD – June Gold:   The market has dropped to the vicinity of the September and December low points at 1544 and 1529. I think a sustained up move is about to start.  

SLV - July Silver: The market is getting close to its December low at 26.27 where a sustained move up is likely to start.

Google: Google is now headed for its 2007 top near 750. Support is at 590.    

Apple: AAPL is headed for 520. From there  a move above the 644 high will start. 

Guesstimates on May 21, 2012

June S&P E-mini Futures: Today's range estimate is 1291-1304. The ES has reached the level of the October 2011 top at 1289.25 and this should prove to be strong support. I think the end of the drop from 1419.75 is imminent.

QQQ:  Support now is at 59.50. The drop from 68.50 is nearly over and should be followed by a move to new bull market highs.          

TNX (ten year note yield):  The 10 year yield is back to the low of its recent multi-month trading range. I still think that the 10 year yield has started a move to  3.00%.  

Euro-US Dollar: The Euro has rejected the 1.3300 resistance level. The market is headed for 1.2600.

Dollar-Yen: This market is headed for 75 and lower.

June Crude: The market is headed  down to  75.   

GLD – June Gold:   The market has dropped to the vicinity of the September and December low points at 1544 and 1529. I think a sustained up move is about to start.  

SLV - July Silver: The market is getting close to its December low at 26.27 where a sustained move up is likely to start.

Google: Google is now headed for its 2007 top near 750. Support is at 590.    

Apple: AAPL is headed for 520. From there  a move above the 644 high will start. 

Guesstimates on May 18, 2012

June S&P E-mini Futures: Today's range estimate is 1301-1316. I think the end of the drop from 1419.75 is imminent.

QQQ:  Downside target is 62.50.          

TNX (ten year note yield):  The 10 year yield is back to the low of its recent multi-month trading range. I still think that the 10 year yield has started a move to  3.00%.  

Euro-US Dollar: The Euro has rejected the 1.3300 resistance level. The market is headed for 1.2600.

Dollar-Yen: This market is headed for 75 and lower.

June Crude: The market is headed  down to  75.   

GLD – June Gold:   The market has dropped to the vicinity of the September and December low points at 1544 and 1529. I think a sustained up move is about to start.  

SLV - July Silver: The market is getting close to its December low at 26.27 where a sustained move up is likely to start.

Google: Google is now headed for its 2007 top near 750. Support is at 590.    

Apple: AAPL is headed for 520. From there  a move above the 644 high will start. 

Guesstimates on May 17, 2012

June S&P E-mini Futures: Today's range estimate is 1314-1330. The ES has reached the 1310-20 target zone. I think the end of the drop from 1419.75 is imminent.

QQQ:  Downside target is 62.50.          

TNX (ten year note yield):  The 10 year yield is back to the low of its recent multi-month trading range. I still think that the 10 year yield has started a move to  3.00%.  

Euro-US Dollar: The Euro has rejected the 1.3300 resistance level. The market is headed for 1.2600.

Dollar-Yen: This market is headed for 75 and lower.

June Crude: The market is headed  down to  75.   

GLD – June Gold:   The market has dropped to the vicinity of the September and December low points at 1544 and 1529. I think a sustained up move is about to start.  

SLV - July Silver: The market is getting close to its December low at 26.27 where a sustained move up is likely to start.

Google: Google is now headed for its 2007 top near 750. Support is at 590.    

Apple: AAPL is headed for 520. From there  a move above the 644 high will start. 

domed house update

The chart at the top of the post shows daily bars for the Dow industrials going back to the beginning of 2011. It has been labeled to correspond to the schematic of Lindsay's 3 peaks and a domed house formation. I have been tracking this particular formation for quite some time now.

I am sticking with my interpretation of the December 2011 reaction low as point 14 and the start of the first story of the domed house. As a rule one can expect the top of the domed house, labeled as point 23 in the schematic above, about 7 months and 10 days from point 14. There are times when this count should be taken from point 10 which here is the October 4, 2011 low. That would have put point 23 yesterday and so is obviously not a very good fit here. I think it is more likely that we are seeing the roof of the first story developing - points 15 through 20. Then point 23 is due toward the end of July.

If you want to learn more about Lindsay's 3 peaks and a domed house and like having it explained to you step by step with lots of historical examples you can buy a 50 minute presentation of the whole theory on DVD from Ed Carlson, author of George Lindsay and the Art of Technical Analysis. The DVD comes with extensive cover notes describing the main points of the 3pdh and you will find it a handy reference guide.

Guesstimates on May 16, 2012

June S&P E-mini Futures: Today's range estimate is 1329-1342. The ES reached the top edge of the 1310-20 target zone last night. I think the end of the drop from 1419.75 is imminent.

QQQ:  Downside target is 62.50.          

TNX (ten year note yield):  The 10 year yield is back to the low of its recent multi-month trading range. I still think that the 10 year yield has started a move to  3.00%.  

Euro-US Dollar: The Euro has rejected the 1.3300 resistance level. The market is headed for 1.2600.

Dollar-Yen: This market is headed for 75 and lower.

June Crude: Support at 100 has been decisively broken. It looks like the market is headed  down to  75.   

GLD – June Gold:   I think the market will pay a visit to the vicinity of the September and December low points at 1544 and 1529 before another up leg starts.  

SLV - July Silver:  I think the market will pay a visit to its December low at 26.27 before reversing.

Google: Google is now headed for its 2007 top near 750. Support is at 590.    

Apple: AAPL is headed for 520. From there  a move above the 644 high will start. 

Guesstimates on May 15, 2012

June S&P E-mini Futures: Today's range estimate is 1332-1347. I think the ES is headed for 1320-30 where I expect the drop from 1419.75 to end.

QQQ:  Downside target is 62.50.          

TNX (ten year note yield):  The 10 year yield is back to the low of its recent multi-month trading range. I still think that the 10 year yield has started a move to  3.00%.  

Euro-US Dollar: The Euro has rejected the 1.3300 resistance level. The market is headed for 1.2600.

Dollar-Yen: The yen has decisively broken below support at 81.00. This means that the market is headed for 75 and lower.

June Crude: Support at 100 has been decisively broken. It looks like the market is headed  down to  75.   

GLD – June Gold:  Gold has reached the 1585 downside target. However I think the market will pay a visit to the vicinity of the September and December low points at 1544 and 1529 before another up leg starts.  

SLV - July Silver:  Support at 28.50 has been reached. But I now think the market will pay a visit to its December low at 26.27 before reversing.

Google: Google is now headed for its 2007 top near 750. Support is at 590.    

Apple: AAPL is headed for 520. From there  a move above the 644 high will start. 

Guesstimates on May 14, 2012

June S&P E-mini Futures: Today's range estimate is 1327-1342. I think the ES is headed for 1320-30 where I expect the drop from 1419.75 to end.

QQQ:  Downside target is 62.50.          

TNX (ten year note yield):  The 10 year yield is back to the low of its recent multi-month trading range. I still think that the 10 year yield has started a move to  3.00%.  

Euro-US Dollar: The Euro has rejected the 1.3300 resistance level. The market is headed for 1.2600.

Dollar-Yen: The yen has decisively broken below support at 81.00. This means that the market is headed for 75 and lower.

June Crude: Support at 100 has been decisively broken. It looks like the market is headed  down to  75.   

GLD – June Gold:  Gold has reached the 1585 downside target. However I think the market will pay a visit to the vicinity of the September and December low points at 1544 and 1529 before another up leg starts.  

SLV - July Silver:  Support at 28.50 has been reached. But I now think the market will pay a visit to its December low at 26.27 before reversing.

Google: Google is now headed for its 2007 top near 750. Support is at 590.    

Apple: AAPL is headed for 520. From there  a move above the 644 high will start. 

Guesstimates on May 11, 2012

June S&P E-mini Futures: Today's range estimate is 1335-1350. The J.P.Morgan news after yesterday's close has produced a trading range lower than yesterday's day session. I think this means that the ES is headed for 1320-30.

QQQ:  Downside target is 62.50.          

TNX (ten year note yield):  The 10 year yield has drifted back into its recent multi-month trading range. I still think that the 10 year yield has started a move to  3.00%.  

Euro-US Dollar: The Euro has rejected the 1.3300 resistance level. The market is headed for 1.2600.

Dollar-Yen: The yen has decisively broken below support at 81.00. This means that the market is headed for 75 and lower.

June Crude: Support at 100 has been decisively broken. It looks like the market is headed  down to  75.   

GLD – June Gold:  Gold has reached the 1585 downside target. However I think the market will pay a visit to the vicinity of the September and December low points at 1544 and 1529 before another up leg starts.  

SLV - July Silver:  Support at 28.50 has been reached. But I now think the market will pay a visit to its December low at 26.27 before reversing.

Google: Google is now headed for its 2007 top near 750. Support is at 590.    

Apple: AAPL is headed for 520. From there  a move above the 644 high will start. 

Guesstimates on May 10, 2012

June S&P E-mini Futures: Today's range estimate is 1357-1370. It now looks like yesterday morning's drop below the Sunday night low at 1342.50 was a shakeout. I think the ES is headed for 1370 today and I also think the odds favor a breakout above that level tomorrow and next week. If that happens I will abandon my 1320-1330 target range and conclude that yesterday's low at 1339.25 ended the drop from 1419.75.

QQQ:  Downside target is 62.50.          

TNX (ten year note yield):  The 10 year yield has drifted back into its recent multi-month trading range. I still think that the 10 year yield has started a move to  3.00%.  

Euro-US Dollar: The Euro has rejected the 1.3300 resistance level. The market is headed for 1.2600.

Dollar-Yen: The yen has decisively broken below support at 81.00. This means that the market is headed for 75 and lower.

June Crude: Support at 100 has been decisively broken. It looks like the market is headed  down to  75.   

GLD – June Gold:  Gold has reached the 1585 downside target. However I think the market will pay a visit to the vicinity of the September and December low points at 1544 and 1529 before another up leg starts.  

SLV - July Silver:  Support at 28.50 has been reached. But I now think the market will pay a visit to its December low at 26.27 before reversing.

Google: Google is now headed for its 2007 top near 750. Support is at 590.    

Apple: AAPL is headed for 520. From there  a move above the 644 high will start. 

reaction low in place or nearby

This morning low in the cash S&P (its daily chart is the second one above this post) may well prove to be the end of the drop from the early April top. If it isn't the exact low then the worst I see is another 20 points on the downside. You can see my reasons for this prognosis in the charts above this post all of which you can find updated in real time on my chart page. 

The top two charts show the 5 and10 day moving averages of the daily count of the number of advancing issues on the New York Stock Exchange. You can see that both moving averages are above the levels they reached at the April 10 low while the cash S&P is below the level it reached at that low. These are bullish divergences at oversold levels arising at a new reaction low. Such configurations often presage the emergence of strong and sustained rallies. Since I think this is a bull market (the S&P is above its rising 200 day moving average in its daily bar chart above) the conclusion is that the market will soon head above the level of its April top.

The middle chart shows the running total of  the differences between the numbers of advancing and declining issues each day on the New York Stock Exchange. Note that it too is above the low it reached on April 10 - again a bullish divergence.

Finally I want to point out that the put volume relative to call volume on equities has been rising to the highest levels seen this year. The bottom chart is the five day moving average of this number. While the number may yet go higher as the market goes lower, the fact that it has moved above recent tops and above a descending trend line is a warning that an important low is near.

Guesstimates on May 9, 2012

June S&P E-mini Futures: The ES traded well below 1352.50 yesterday and again this morning so the drop Sunday night below the April 10 low was not a shakeout. The market is headed for 1320-30. From a low in that zone a rally to new bull market highs should begin.

QQQ:  Downside target is 62.50.          

TNX (ten year note yield):  The 10 year yield has drifted back into its recent multi-month trading range. I still think that the 10 year yield has started a move to  3.00%.  

Euro-US Dollar: The Euro has rejected the 1.3300 resistance level. The market is headed for 1.2600.

Dollar-Yen: The yen has decisively broken below support at 81.00. This means that the market is headed for 75 and lower.

June Crude: Support at 100 has been decisively broken. It looks like the market is headed  down to  75.   

GLD – June Gold:  Gold has reached the 1585 downside target. However I think the market will pay a visit to the vicinity of the September and December low points at 1544 and 1529 before another up leg starts.  

SLV - July Silver:  Support at 28.50 has been reached. But I now think the market will pay a visit to its December low at 26.27 before reversing.

Google: Google is now headed for its 2007 top near 750. Support is at 590.    

Apple: AAPL is headed for 520. From there  a move above the 644 high will start. 

Guesstimates on May 8, 2012

June S&P E-mini Futures: I am beginning to think that the drop below the April 10 low at 1352.50 which carried the ES to 1342.50 Sunday night was a shakeout. If so the ES won't spend much if any time below 1352.50 and the market will be headed above 1419.75. Any tendency to trade below 1352.50 will mean that the ES will continue its drop into the 1320-30 zone. In either case I think we are seeing a normal reaction in a bull market and I think we will also see the ES trade well above 1420 during the coming months.

QQQ:  Downside target is 62.50.          

TNX (ten year note yield):  The 10 year yield has drifted back into its recent multi-month trading range. I still think that the 10 year yield has started a move to  3.00%.  

Euro-US Dollar: The Euro has rejected the 1.3300 resistance level. The market is headed for 1.2600.

Dollar-Yen: The yen has decisively broken below support at 81.00. This means that the market is headed for 75 and lower.

June Crude: Support at 100 has been decisively broken. It looks like the market is headed  down to  75.   

GLD – June Gold:  Gold will probably drop to 1585. A move to 2100 is underway.

SLV - July Silver: I think silver is headed for 50.00. Support now is at 28.50 (not 18.50  as I mistakenly wrote yesterday).

Google: Google is now headed for its 2007 top near 750. Support is at 590.    

Apple: The ES has probably its reaction low on a shakeout below 1352.50. If so AAPL will probably hold above its reaction low at 555. If it doesn't then I would expect a drop to strong support at 520. In either case a move to new highs above 644 is in the cards. 

Guesstimates on May 7, 2012

June S&P E-mini Futures: Today's day session range estimate is 1352-1362. The ES broke below 1375 decisively Friday and in Asian trading last night took out the 1352.50 April 10 low while dropping as low as 1342.50. The ES has since rallied 17 points and I think the market will climb further to 1378 or so before testing and probably breaking the 1342.50 low. The ultimate low of the reaction will probably develop in the 1320-30 range. I still think this is a reaction in an ongoing bull market and expect to see the market trade well over 1420 during the coming months.   

QQQ:  Downside target is 62.50.          

TNX (ten year note yield):  The 10 year yield has drifted back into its recent multi-month trading range. I still think that the 10 year yield has started a move to  3.00%.  

Euro-US Dollar: The Euro has rejected the 1.3300 resistance level. The market is headed for 1.2600.

Dollar-Yen: The yen has decisively broken below support at 81.00. This means that the market is headed for 75 and lower.

June Crude: Support at 100 has been decisively broken. It looks like the market is headed  down to  75.   

GLD – June Gold:  Gold will probably drop to 1585. A move to 2100 is underway.

SLV - July Silver: I think silver is headed for 50.00. The 31.50 level was broken and now 18.50 looks like support.

Google: Google is now headed for its 2007 top near 750. Support is at 590.    

Apple: The ES has established a new reaction low and AAPL is likely to do so too. However there is strong support near 520 and that is the worst I expect to see on the downside before AAPL moves to new bull market highs.