The market held much of its opening pop on Monday despite the turmoil and chaos in Washington but hard comments by President Obama in the afternoon put a cap on the action as the indexes fell off their highs. The Head Zombie warned Republicans, again, that he will not negotiate over an extension of the debt ceiling as the budget battle heats up with a deadline that is rapidly approaching Congress by month’s end.
The bulls got the win but Tech wasn’t much help as Apple (AAPL, $450.12, down $14.78) also weighed on the Nasdaq. We mentioned in our Weekly Wrap and Daily there was further risk down to $450-$440:
“The 50-day MA at $463 was tested on Thursday and Friday and a close below this level would be bearish for a test down to $450-$440. A rebound past $475 would take some of the pressure off shares.” (END)
Shares of Apple traded to a low of $447 on Monday. We are wondering if Carl bought more at these “no-brainer” levels. (continued…)