AAPL Update

As you know, AAPL is a behemoth, I wouldn't expect it to turn on a dime, but since the early morning rout in AAPL, it has held its ground traveling laterally which is where we often see divergences, traders look for momentum to define underlying smart money action, but in years of experience, their moves are made in relative calm.

The QQQ divergence is getting to be quite impressive, especially relative to the leaders today. One thing of note is that we have NOT seen downside follow through in the market as a whole, which has to be discouraging to the bears. I'm not sure the bulls know what to think at this point, the "Buy the dip" brainwashing has been very effective so I'll have to look for my sentiment update from Sam-that's your cue buddy!

I don't see how the Q's can rotate in with out at least some support from AAPL. The entire premise of the bounce from the SPX breaking the 50 day moving average was a volatility bounce. the evidence built in after the theory, the concept of the volatility bounce has been the trend in the market and until the trend ends, we are best off following the trend.

As you know AAPL broke a centennial mark at $600 and support below that today, translation, "Candidate for a volatility bounce". Since the a.m. drop in AAPL, I haven't seen much that would indicate that trend of volatility shakeouts has ended and AAPL is in the perfect spot for such a move.

 AAPL 5 min leading positive today with some relative divergences as well.

The 15 min chart is what is really looking more impressive. Shorter term divergences have a better chance of being run over, this 15 min has less of a chance of being run over and a significant portion of it came today alone.