This article originally appeared on Jan. 27, 2014, on RealMoney.com. To read more content like this plus see inside Jim Cramer's multimillion-dollar portfolio for FREE... Click Here
The market's bounce this morning has left people wanting. After the market went out at the lows Friday, a rebound is about the last thing most of us probably wanted to see -- because, in my view, Friday wasn't enough to be considered a wash-out move. Today's action so far has reflected that.
Issues are still lingering overseas but, I believe news from abroad has a different impact on the market vs. anything domestic. Even though it's more readily available than ever, many traders appear to need more reinforcement of it -- either it takes longer to sink in or to realize the potential impact on markets, or folks simply do not believe anything they are hearing.
Meanwhile, over the last two hours of trading I've been watching an inverse cup-and-handle pattern form on the five-minute chart of the SPDR S&P 500 (SPY). It may not be huge, but does look to point lower, around $177.35, for a target. I'd like to see a wash-out in the next day or two, but then I'm very heavy on cash at the moment, so I am talking my book.
Apple (AAPL) will be the big one tonight, with the company set to post earnings after the close. Options are fluctuating, but they're pricing in a share move of between $29 and $30 by the end of the week. If the stock climbs above $570, I could see it blasting all the way to $600 in a very quick fashion, as the resistance and upside target both lie between $570 and $575. Any downside moves would find support around $530, but if that area gives way I'll be looking for another retest of $503. In other words, I think a more-than-$25 move is very possible at this juncture.