Summary:
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US indices look to recover after recent declines
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US500 fell to lowest level since early May yesterday
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Apple in focus with talk of new product launch
Monday’s session saw some strong declines for US indices with a bright start fading out and the US500 dropping to its lowest level since early May. However, there was a large bounce into the closing bell, which meant the market ended comfortably off the lows and this could be seen as a positive sign going forward. As of yesterday’s close the S&P500 (US500) had fallen nearly 10% for the month of October, meaning should price end tomorrow around these levels then the declines would be the 10th largest monthly losses on record.
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The US500 showed a large hammer on H1 into last night’s close which could be taken as a positive sign going forward. The top of the H1 cloud is currently around 2675 and if the market can get back above there today then the short term trend could be seen to have turned upwards. Source: xStation
In terms of individual stocks, the FAANGs have been in focus of late with large declines seen in several of these shares. Considering the wider declines of the last month, Apple has held up fairly well and this afternoon the stock is in focus as they host an event in Brooklyn. There’s much speculation around this as the firm is expected to announce new iPad Pros, a new MacBook Air and a new Mac Mini. There could also be updates on the company’s wireless charging station called AirPower or its wireless AirPod headphones.
The new iPad Pro is expected to adopt many of the features found in the iPhone XS. That means the home button and embedded fingerprint sensor will go away in favor of Apple's Face ID facial recognition system, according to TF International Securities analyst Ming-Chi Kuo, who has an excellent track record of predicting future Apple products. Kuo says the new iPad will have an 11-inch screen.
For the Mac, Apple is expected to announce a new entry-level MacBook, Kuo has reported. The new MacBook is said to have a 13-inch, high-resolution display, and would replace the current MacBook Air, which hasn't been significantly updated in several years. Apple is also expected to announce a new model of the Mac Mini desktop computer, which hasn't been updated since 2014.
Apple shares have been holding up better than most tech stocks during the recent sell-off with the stock only breaking below the 23.6% fib of the rally since January yesterday. The firm is expected to announce new products at a show in Brooklyn this afternoon. Source: xStation
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