Market On Open - Monday 7 August

Could Apple Earnings Break The Market?

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Only One Bear Standing - A Correction Must Be Due

Since now all bears save for Hedgeye have thrown in the towel, it follows mechanically that we may see some downside in the equity indices.  Not least because Mighty Apple made a weak print last week, which may shake bulls' confidence.

As of Friday's close, each of the four indices look to be following a downside path and for now that path is consistent with our usual Elliott Wave / Fibonacci level charting method.  The S&P500 and the Dow Jones topped on 27 July, the Nasdaq-100 on 19 July, the Russell 2000 on 1 August.  Futures are up in early trading today but not so much as to invalidate the downside potential.

Below we run through where the indices may be headed short term.  Medium term we remain of the view that up will be the dominant trend, and our staff personal account positioning reflects this.  We hold short index positions in an attempt to catch the short-term downside, long index positions to own for the longer term, and plenty of single-name stocks held long for the long term.

So let's get to it.  For our paying members only we walk through the shorter- and longer-term outlooks for the S&P500, the Nasdaq, the Dow and the Russell.  If you've yet to sign up to a paying plan here, you can do so right from the link below.