The first is Apple. It got up close to mid-90's last month and ran into a brick wall after hitting a lifetime high. By the way, I stopped into an Apple Store earlier in the week at the mega Palisades Mall in West Nyack, New York where you could barely walk around. It was like the old Star Trek episode where the planet was so crowded that everyone was packed together like rush hour in the Tokyo subway. Well, it wasn't that bad, but business was booming and my daughter is going to love her iPod color player when she gets on Christmas.
Those iPods were going faster than bananas at a chimp convention, but apparently someone on the Street must have realized that everyone this side of the next star system would have to buy an iPod to keep the stock roaring past $100. Today AAPL has managed to bust down below its 50 day moving average. This bears some watching. The break below the 50 dma is similar to what happened at the start of the year which followed a blow off top and ended up being a fairly long lasting slide down to the 200 dma.
Let's look at QQQQ. It is just today moving a tenth away for the 50 day.
QQQQ has spent the better part of four months above the 50 day moving average - similar to its run of late 2004 as seen on the chart. It's slump below the 50 dma was a lot sharper and faster in early 2005, but the similarities are striking; so this is something that will need to be watched closely as well if it makes the move below.