Apple running the market on technical day

Today there is a session where the technical analysis in the trading is prime: it is that before an important event, as it is tomorrow the announcement of the FOMC, it is when the technical indicators and patterns work best. Obviously from tomorrow the situation will be completely different since the economic news is what sets the course of the market: you also have the monthly inflation data CPI and Retail Sales, as well as meetings of the Bank of England and Bank of Japan, where, Unlike the FED, both are expected to keep their interest rates unchanged.

Therefore, I always maintain that trading must take the best of both opposing currents: you can not be 100% fundamental, or 100% technical. Each one has its space and time, you just have to know when one premium over the other. Today at least, it is an ideal day for day-traders.

Yesterday, for example, the Apple APPL chart closed with a hammer located just above its significant SMA100 average, a clear signal of bounce upward. And as we know that Apple moves the entire technology sector, today they recover after the largest sell-off since the end of 2016, with the Nasdaq reaching +0.80%. And this in turn pulls the entire SPX market by 0.40%.

The hammer, with its handle touching the SMA100 average, marks a technical rebound, which we have no idea how long it will last since tomorrow is the news that marked the course.