Apple is according to us, still the most important stock for the overall sentiment. The crowded long stock has bounced from lows, but it is a tired bounce.

The trend channel since early November is simply perfect. We will continue watching this simple but great trend channel. Why complicate things?

No Apple no NASDAQ.

Did you know that NASDAQ is up 11% from recent lows? The bounce logic was outlined earlier in December when several of the extreme sentiment indicators reached peaked bearishness. Getting overly bullish on NASDAQ after the 11% move higher seems a rather late trade for the short term.

NASDAQ continues trading inside the big negative trend channel as well. Note that the index managed briefly touching the upper part of the channel today before the reversal kicked in.

After all equities bounced right when the crowd was getting MAX bearish. Below the AAII investor sentiment bearish readings.

Keep it simple and disciplined here.

Source: charts by Bloomberg