Stock Chart Analysis – March 22
As shown by the stock market movement today, this market does not want to go down. The market gapped down hard but at the end of the day, we ended off on a very positive note. This means that buyers are buying any dip that the market gives us. The nasdaq market is especially strong with AAPL (Apple) leading the way. It looks like AAPL might break out out of this flag pattern and move higher from here and make new 52 week highs soon.
Eventhough this market is overbought and needs a much bigger pullback, I would not short this strong market. If a stock is in an uptrend, look to buy the dips.
Mike
If you bought AAPL, it still looks pretty good. But be sure to set some tight stops in case the market decides to rollover.