Steve Jobs resigns last evening. The weekly chart shows the negative divergence spank downs in May 2010, May 2011 and now, July-August 2011. The mid 2010 spank down led to a sideways consolidation thru 240-280. The chart was breaking down but Chairman Bernanke delivered QE2 in August 2010 and the markets catapulted skyward. The red circles show that the oomph created further upside targets. The pink lines represent a significant top for Apple and the negative divergence smacked it south. Projection is sideways to sideways down moving forward. Initial support target is the 20 week MA at 352, then the horizontal support at 320 as the year moves along. Apple is owned by virtually everyone so this reinforces a lot of sideways movement going forward.
AAPL Daily Chart:
Steve Jobs resigns last evening. Daily chart shows the run-up from Chairman Bernanke's QE2 announcement in August-September 2010. Price action topped and rolled over in February creating a channel of lower lows and lower highs into June 2011. Note the channel breakout as the fireworks sparkled on July 4th; 345 will serve as critical support on the way back down. This is also the 200 day MA so in light of Steve's announcement, watch 343-345 closely today. Failure would lead to 320-325. The June-July move is extremely powerful and helps to sustain strong underlying strength that will take time to work off. The chart favors a lot of sideways action moving forward. Projection is sideways to sideways down thru the 320-365 zone as the year moves along.
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