Mr. Market, "Tear Down this Wall!"
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"Tear down this wall!" was the challenge issued by United States President Ronald Reagan to Soviet Union leader Mikhail Gorbachev to destroy the Berlin Wall, in a speech at the Brandenburg Gate near the Berlin Wall on June 12, 1987, a few months before the stock market crash in October of 1987.
If you combine the time frame when Ronald Reagan was president, Fibonacci and the NAS composite index what do you get? This combo comes to mind when you look at the price point at (1) in the chart below. The NAS rally since the 2009 lows has it back at the top of a 10-year channel and at the Fibonacci 61% retracement level off the 1982 lows and the 2000 highs.
Apple currently is hovering around its 38% retracement level off the 2003 lows and 2012 highs. Apple broke the neckline of its Eiffel tower head and shoulders top around the $550 level. Apple needs to hold at the 38% level or sellers will step in and push it down to its 50% level around $350.
For the NAS Composite index to break down the wall of resistance in the top chart, it could sure use the help of the Apple to stop falling here!
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