Don’t look now, but COMP is approaching our 6760 target. As we discussed on Oct 10 [see: Plan B] COMP faced significant downside if its 200-DMA didn’t hold.
Bottom line, it didn’t. It was off as much as 13.3% last month before beginning a bounce that was destined to fail. Next week, it will get another chance at tagging some meaningful support around 6760-6800 – depending on whether it happens Monday or later in the week.
Members will recall we had two near misses on the 200-DMA in Feb and April, followed by a breakout that defied logic. Now, two months after it broke down through the important moving average, COMP has been laid low.
Can it hold here, or will AAPL’s continuing meltdown drag it even lower?
My 144.48 target for AAPL remains unchanged since Nov 14, the day it broke below its SMA200 [see: When Push Comes to Shove.] Then……and, now.