AAPL Update

AAPL is now bigger then several sub-Industry groups combined, take semi-conductors for example, that makes AAPL the ultimate bellwether for the market. After seeing signs of increased 3C deterioration, early yesterday I said to watch for AAPL to post a small bodied closing candle on heavy volume as this would be the first step in a reversal. Last night I covered AAPL and Technology in detail in this post so I won't be reposting a lot of charts.

Here are the key charts.

 As suspected early yesterday, AAPL did post a closing star candle, you could almost call it a bearish reversal evening star. The volume was increased, but not as big as I had hoped for, but with the heavy volume and AAPL's inability to add much from the open, the concept of the conditions were in place. The last sentence of  last night's analysis of AAPL/Tech was,

"We'll have to see if AAPL now puts in a confirmation candle for the reversal set up (sometimes there are 2 or 3 dojis stars in a row before a confirmation candle)." 


Thus far today, we have the start of such a candle in a gap up and so far some decline. We need a gap up to have any chance of a strong confirmation candle which would be a bearish Engulfing Candle, so the first step is there. The close would need to be lower then yesterday's open and the lower the close, the stronger the confirmation candle for a reversal.

 Intraday, here's AAPL's Gap up and subsequent decline, it is somewhat detached from the market.

AAPL in green/SPY in red, AAPL did see some heavy volume within a downtrend suggesting an intraday reversal up which we have seen, although relatively, it is under-performing the SPY intraday.

 These charts and the increased downside momentum were the hint to be looking for an AAPL reversal-1 min

 2 min

5 min

So now we'll see if the weakness continues and bleeds in to longer term charts, but the most important thing is how AAPL closes. Volume is not needed for a bearish engulfing pattern, but I would suspect volume would be high if one appeared.