Can We Google the Bear into Submission?

Tonight Google (GOOG) rocked in the after hours market with blowout earnings and a $77 surge, or 17%! Can this be the Bull whip the market needs to crack the nearly impenetrable resistance that the Bears have so successively defended? The time is now, if there ever was.

The fight will take place at 12,750 on the Dow. If we break through to the other side, there's nothing in our way for another 400 points, at least! If the S&P breaks 1385, it will have confirmed a 3 wave up, if the wave plays out you can expect to a run up to 1404 (Fib 1.618), or best case 1454 (Fib 2.618). The Naz nemesis is 2392. The good news is that the inverse head and shoulder patterns is still in play. When we come within striking at these levels, expect the bears to put up a spirited defense, and volatility to increase, be careful not to get too aggressive as we near these numbers. Better to take a sit and watch the game from the sidelines. There will be plenty of opportunity once they have cleared and backtested.

Today's action can best be described as a stalemate. It started with a decent selloff up until mid-session, then a rally back until the close, for a slight advance in in the Dow (+1.22), S&P (+0.85), and a mediocre decline in the Naz (-8,28). This can be attributed to overbought conditions across the board. A bright spot was the Naz holding critical 2330 support provided by the 50 day moving average. If we clear the inverse head and shoulder neckline with some force, the pattern will be confirmed, and the down trend could be over.

The tech sector has led the markets this week, with strong earnings from Google and IBM, after eBay and Nokia both showed weak outlooks last week. Merrill Lynch's poor showing on Monday was shrugged off completely, jumping 3.7% after reporting a $6.5 billion write down. Very strange indeed.

Apple (AAPL +0.79) had a slight gain, leading the market in the second half of the session with a surge to the close, but up sharply (2.76 or 1.79%)in after hours on the tail of Googles earnings. Apple will release earnings for Q2 2008 Wednesday, April 23rd. Below are the consensus estimates.

Data from Yahoo Finance reports 26 total estimates for Q2.
High Estimate: $1.18
Low Estimate: $ .94
Mean Estimate: $1.06

Q2 Previous Yr: $ .87
Apple Guidance: $ .94

Yr/Yr Growth:
Analyst Estimate:22%
Apple Guidance: 8%