Friday moves felt like re-positioning before the weekend rather than underlying weakness in the stock. This is why i think it was shakeout bar which will be reversed come monday. Here is why:
SPX is in a confirmed uptrend.
China / US trade deal nearing: https://www.realclearpolitics.com/video/2019/04/04/trump_china_trade_deal_may_be_the_biggest_deal_ever_made.html
The US small cap index (IWM) broke through the 200d resistance. They are now in a confirmed uptrend.
Peers in the tech sector were strong on friday including APT which has a high correlation to APX. APT was up 4% on friday despite sell off in APX. I suspect we are somewhere near where APT was 2weeks ago. The shakeout before the breakout
APX is simply backtesting to support
The US dollar is setting to breakout which helps APX as they earn revenue in USD.
Why Friday was a Shakeout candle - 6 reasons
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