As Evergrande sparked the worst day in the U.S. stock market since May, the benchmark S&P 500 index tested the 4,300 level on Monday but rebounded in the afternoon session. The rally continued into Tuesday morning and Monday’s low of 4,305 can be seen as a new “point of reference,” Scott Redler, Chief Strategic Officer of T3 Live commented in a Tweet Tuesday morning.
Redler: 5% correction from September
Monday’s 4,305 level represents a 5% correction from the high in early September that Redler sees as a good spot to cover shorts. Referring to yesterday’s gap in SPX Futures from 4,402 to 4,427, he said in his tweet:
If the Bears want this to be an A,B,C corrective phase, the sellers need to reject the price in the sessions up ahead into the 4,440 area.
$spx levels and thoughts pic.twitter.com/yrAXnnclVZ
— Scott Redler (@RedDogT3) September 21, 2021
Meanwhile, the media will “try and put a reason for the bounce” on Tuesday — much like “they did” during Monday’s decline, he also wrote.
Apple price outlook: ‘if your long, sell some’
In a separate tweet, Redler also suggested that investors cut their exposure to Apple Inc (NASDAQ: AAPL).
If you’re long, sell some, and we’ll see if $145.76 to $147 rejects price for clues in tech.
$aapl levels and thoughts pic.twitter.com/WGge8q0SYN
— Scott Redler (@RedDogT3) September 21, 2021
The recommendation comes after AAPL broke the $146 level on Friday and continued the move down on Monday, hitting a low of $141.28. It, however, rallied back to about $143 before the market close to keep above the 100-day moving averages.
Earlier this month, the stock had investors excited as it rallied to a record $157 a share, followed by an about 10% correction in the subsequent weeks.
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