Market Update - 10/18/10

As I talked about in my video yesterday, Apple earnings would play a big role. Apple is currently down $20 in after hours trading and IBM is down about $5. And with Bank of America reporting tomorrow morning, we could be in for a wild ride tomorrow.

This wedge we are tracing on the 5 minute charts is still playing out. If the futures turn around again like they did last night, 1190 could be in the works.

1195 is where the trendline would be hit tomorrow morning.

However, if the futures can continue this down move into tomorrow morning and continue throughout the day, 1175 and 1166 are the key downside pivots. Tomorrow is a key day with all of these big earnings, it will be important to how the market reacts at those pivots.

I will update the charts of the day soon, which includes Apple and the XLF.