2:35 pm ET: Today's rollercoaster market action is being fueled by an intense struggle between the bulls and the bears. The VWAPs on both sides are running high and who finally wins the day is anyone's guess. The Dow Transport Index (DTX) is still hovering about 500 support while the Dow Industrials (DJIA) and S&P 500 (SPX) are trying to stay above their waterlines as well. That's the good news.
The bad news is that the overall trend in the VIX is up. This rise in fear and uncertainty only scares off buyers and encourages short-sellers leading to a market decline. A VIX close over 20 would be the signal that the bears are sliding into the driver's seat. A warning to you bulls: Don't caught with your pants down!
Today, two tech bellwethers, Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN), report earnings after the bell. These reports will both be closely watched, especially Apple's. The company typically blows out analyst estimates and should it not do that today it's likely we'll see a further slide in the share price. A break below $600 would be very discouraging but a break below $575 major support would be devastating. Stay tuned!
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