Apple bounces off the .618 (61.8%) RetracementTaking a look at Eastman Chemical Moving forward, we decided to look at a local company, Eastman Chemical (EMN) since it has been in a decline for 6+ months. Eastman is also forming a bullish piercing pattern at the 61.8% Fibonacci retracement level, a possible strong buy signal. This is significant if you believe that Eastman is still in a long-term uptrend, which the iInvest® Team still thinks it is. S&P 500, Wilshire 5000 and NYSE form bullish monthly piercing patterns Looking at the S&P 500 companies by weight, Apple is #2 just under Microsoft; therefore, if Apple just hit a significant long-term bottom, this news could be good for the overall stock market going forward. In fact, looking at all the major U.S. indices lately, they seem to be forming a bullish Piercing Pattern, looking at monthly candlestick charts. Also, most have hit key Fibonacci retracement levels, including the S&P 500 hitting the 50% retracement zone. If the volume can pick up today and tomorrow and the piercing pattern hold, it will be another good sign for the overall stock market going forward.
Written by Craig Dillon
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