IBM, daily, 4yr
Summary
Arguably one of the most stable corporations in the western world, IBM has seen its stock double since the lows of spring 2009. That in itself is a very fair reflection of the broader market which has rallied from sp'666 to 1474 just last month.
Today's action could merely be a shakeout move, and - just like July, if we see a close back over the daily 10MA (currently $207), then it will indeed be a case of further highs to come.
If however we can take out the July low of $181, then it should in theory be a prime warning of broader market weakness.
First downside target would be $175, and a more likely $160.
Secondary levels are $140, and the $125/120 zone.
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The latter targets absolutely look out of range this year.
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IBM stats -forward P/E is only 12, which is 'reasonable', even when considering the wider global economy.
IBM remains the ultimate tech stock, and will be a good one to monitor in the weeks ahead. All those bears looking for a break below secondary rising support (currently in the sp'1350s), will need to see IBM take out the $181 level, and stay under it!
