APPLE AND AMAZON MAY BE BOTTOMING

APPLE MAY BE BOTTOMING... Chart 1 shows Apple (AAPL) in a downside correction since late January.   That correction has taken the stock back down to its 200-day moving average which has acted as a long-term support line.  Assuming that its long-term trend is still up, this would be a logical spot for it to start doing better.  And it is.   Today's strong action is pushing the stock to the highest level in more than a month and, more importantly, back above its 50-day moving activity.  Apple may also be benefitting from the recent rotation back into technology stocks that's been taking place over the past couple of weeks.   A pullback in bond yields may also be contributing to those technology gains.

AMAZON.COM BOUNCES OFF CHART SUPPORT... Here's another stock that may be bottoming.   Chart 2 shows Amazon.com (AMZN) in a sideways trading range in effect since the end of August.  The most important feature on the chart was the successful test of support that took place in early March when the stock bounced off its previous low formed during September.  And over the past week it has climbed back above its 50- and 200-day moving averages.   It still has a way to go to clear some overhead resistance barriers.    But the chart suggests that a bottom may have been seen.