Beware The Bear And Apple (DIA, SPY, QQQ, IWM, AAPL)

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bear cave2 Beware The Bear And Apple (DIA, SPY, QQQ, IWM, AAPL)Bears are on the prowl and Apple could sink the world

It was a bad week for global equities as troubling news jumped out like a bogeyman from a dark closet in the fun house of nightmares that global financial markets have become.

Bears are on the prowl, Europe burns, and Apple Computer, darling of hedge funds and individual investors, alike, could sink the world.

However, great danger always brings the concurrent potential for great opportunity.

On My Wall Street Radar

spxpf0505122 Beware The Bear And Apple (DIA, SPY, QQQ, IWM, AAPL)chart courtesy of StockCharts.com

In the chart above, we can see how supply gained control this week as the last column is now “Os.”

Recent highs of 1420 remain significant resistance while current levels of 1369 indicate the last level of support before a “sell” signal is generated for the S&P 500 (NYSEARCA:SPY)

For the week, the Dow Jones Industrial Average (NYSEARCA:DIA) dropped 1.4%, the Nasdaq Composite (NYSEARCA:QQQ) declined 3.7%, the S&P 500 (NYSEARCA:SPY) gave up 2.4% and the Russell 2000 (NYSEARCA:IWM) shed 4.1% from last Friday’s close.

The broad markets remain on the brink of significant moves lower, however, Apple Computer (NASDAQ:AAPL) paints an even more troubling picture.

aapl050512 Beware The Bear And Apple (DIA, SPY, QQQ, IWM, AAPL)chart courtesy of StockCharts.com

In this chart of Apple Computer (NASDAQ:AAPL) we can see how the S&P 500′s largest company has shed approximately 12% over the last month.

However, this recent decline still leaves the storied stock more than 25% above its lows in late January.

A closer look indicates that the stock has broken its 50 day moving average, indicating short term weakness, and also MACD is on a “sell” signal as short term momentum weakens.

aaplpf050512 Beware The Bear And Apple (DIA, SPY, QQQ, IWM, AAPL)chart courtesy of StockCharts.com

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