AAPL Close

AAPL's close was trapped between former support of yesterday's close (now resistance) and today's early intraday lows (support).

 On a 5 min chart this morning's support is very clear as a long hammer around 10 a.m.. After both levels failed, a test of resistance at yesterday's close (top trendline) failed.

 This is a longer term daily chart so you can see how big the true range of the last two days has been compared to AAPL's price history, as well as volume.

 AAPL's closing candle was just shy of a bearish reversal candle formation called "Dark Cloud Cover".  According to Steve Nison (probably the US's foremost authority on Japanese candlestick charting), the components needed for the formation are 1) a strong up day (I showed you the chart above so you can see how large yesterday and today's ranges actually were which is not as clear on this chart). 2) the second day (today) should open above yesterday's intraday high (the higher the open the better), which we saw today. 3) Today's closing candle penetrates at least halfway through yesterday's body, today we saw about 1/3 penetration instead of half. Because it didn't close half way or more, it is not considered a true "Dark Cloud Cover", but Nison says he believes penetrations of less then half can be valid, but prefers to see more confirmation.

There are a few things that make the pattern more powerful, 1) the strength of the day before, as you saw in the longer term chart, yesterday was a large candle. 2) Heavy volume on the open of the second day. Clearly today saw heavy volume on the open.

All in all, it's not the bearish engulfing candle that we saw earlier today, but with today's volume and the size of today's range, this was clearly not a good day for AAPL and opens the door to a reversal.

Here's some AH pricing

 ES rolling over a bit.

I usually don't care too much for AH action, but looking at the EOD 3C charts, it looked like the late dat bounce was going to roll over.

For instance in the QQQ, the bounce from 2 p.m. to the close looked like it was going to roll over both in 3C and price itself, in AH it has.

QQQ AH

I thought the same about the SPY at the same area...

In AH the SPY has started rolling over.

More updates coming...