The shocking fact about Apple's conference call was the rather tepid & low-key tone that sounded more funereal than celebratory after a fairly good earnings report with minor misses that would normally result in a few points shaved off the pre-earnings level.
This is world's largest company, a behemoth, with sales & revenue larger than the GDP of more than half the world's nations, A trillion market cap, until 4:30pm EST today, and a leader in global technology.
So, it was downight depressing to detect the underlying pessimism and the surprisingly lowball earnings estimate for Q4. That's a holiday period with an economy running hot, record unemployment rate, earnings rising, and tons of disposable income available to shop until you drop. Why the lower than expected estimates? That's the main reason they took Apple's stock to the woodshed and took off 14.41 points or 6.48 % as of 8pm EST, a few minutes ago.
Unless the NFP report on Friday morning can recoup some of the afterhour losses in the major indices, the path of least resistance is down, and back below SPX 2700. It has been a spectacular 3-day rally and it could still continue if the bulls come out in full force tomorrow and there is even an average NFP report that can stem the downward momentum.
Of course, a bad report will lead to carnage. Lets see if the bulls can hold the line at 2710, get a decent report, and try to regain the momentum. Not impossible but it is a tough task!
Bear market rallies can be brutal. Tomorrow, we will confirm if this was one of those rallies or a genuine bull market resumption that can shrug off Apple's disastrous earnings report & conference call.
SPX 2710 must hold or else the bears will be in charge.
Edited by dTraderB, 01 November 2018 - 07:27 PM.