AAPL Weekly Chart and Technical Analysis Watch Falling Wedge
AAPL was down 4% last week and the oddest thing is that the broad indexes were up one percent. Apple makes up about 20% of the Nasdaq and about 7% of the S&P 500 (SPX). Many mixed signals are occurring in the markets. Perhaps the money running from Apple is simply moving into riskier small cap stocks, which is causing much of the short-covering rallies and strong movement higher in the small caps to begin the year. Seasonality-wise, the small caps do well this time of year. Thus, the broad indexes remain buoyant despite the AAPL selling but it is far more likely that if Apple weakens further, so will the markets.
The five-year blue trend lines failed in the late summer off the double M top forecasting big trouble ahead. The upward-sloping channel middle rail failed in the October selloff. Price is now at the lower red trend line. The 20-week MA is about to fall thru the 50-week MA which signals long term bearishness ahead. As with all crosses, however, many times price will bounce as the negative cross occurs. The green falling wedge is in play now as explained in the daily chart during the week. Simply type 'AAPL' in the search box above to bring up the recent Apple charts for further study. The indicators are lining up with positive divergence wanting to see a bounce, but the MACD line wants a lower low and the RSI may turn more negative in coming days.
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