AAPL Update

As you know, the indications have suggested Tech wants to rotate in, despite having some fierce head winds for reasons I mentioned in the last post and because of NFLX's guidance. How is NFLX connected to AAPL? It seems to be more of a disposable income issue more than anything. If NFLX is going to hurt on subscriptions that aren't very expensive, than how does that play in to expensive AAPL products?

On the other side of the coin, at least while Steve Jobs was alive, who I suspect learned some very fundamental business practices from watching Scotty on Star Trek ("Kirk: Scotty how long until the warp drive is fixed?" Scotty: I'm giving her my all, I'll need 15 minutes"-Scotty fixes it in 5 minutes, which he knew he could and looks like the hero), everyone knows and has known forever that AAPL guides VERY conservatively, therefore the easily beat-except once not too long ago.

The market is most likely sticking with the trend, AAPL guides low, comes out with a head line beat, Wall Street takes apart the earnings report and everyone realizes after a few days that AAPL growth is probably not sustainable at the past pace. Thus if there's a volatile short term bounce, which industry group is likely to lead it? Tech.

As for the AAPL update...

 AAPL did break just below yesterday's hammer support, but let take a closer look.

 The break did not draw in large volume, that' because there aren't a large cadre of longs to be stopped out, however on the move back above volume pick up.

 Where exactly is the clearest 2 min divergence we have seen today? Right at the break below support, cheap shares.

 2 min is in line.

 5 min has a relative positive divergence and in line

This is and always has been (so long as it has been there) the great hope pinned on AAPL and thus a tech led bounce, a 15 min positive leading divergence. The 15 min timeframe sounds smal, but it is very influential and has moved more than just a swing trade.

This is where it seems hopes are pinned.