AAPL Update

As you know, most every expectation we've had for this bounce off the April 10th lows has been met, even AAPL/Techs rotation identified on the 24th before AAPL earnings. Not that I can say I have evidence to suggest this should happen, but my gut feeling has been that AAPL would lead the very end of the bounce and be the trigger stock.

This morning AAPL is in the green and leading the Technology sector as well as the Tech heavy NASDAQ 100.

 AAPL has managed to hold up in a support zone, I am not a believer in exact support such as $580.17. If you think about what creates the buying and selling that form support and resistance zones, it has a strong emotional component and therefore I view support and resistance as areas, not exact levels. For instance, if you bought AAPL at the close on Monday (far left of the red box) and then held it, saw it rise yesterday and then same a quick decline with the market declining also, you might look to get out of the position at what would be close to break even for you. When emotions drive expectations, that means you may have sold a little above or below, this is an example of what creates support, although probably not my best explanation.

 I mentioned last night that AAPL was vey close to having put in a "Tweezer Bottom" candlestick pattern on the Monday/Tuesday close, it's not textbook, but they rarely are. This would be considered to be a support area and typically see a short term reversal from the pattern. Thus far AAPL has moved up today around .50% off that candlestick pattern.

 The 1 min chart shows a very clear, unambiguous relative, then leading positive 1 min divergence.

 The 2 min chart after seeing some heavy intraday distribution has put in a 2 min relative positive divergence, so the 1 min strength is bleeding in to the 2 min chart.

 The 3 min chart which has less noise and is a bit longer trend shows an accrual of several smaller positive divergences and is showing the best leading positive divergence since last Friday, maybe even before that.

 The 5 min chart is also positive, AAPL has moved up off that initial relative positive divergence and the chart is still leading price a bit.

 The 15 min chart is where we would expect to see the accrual of positive divergences, specially at the tweezer bottom area. The signal that AAPL and Tech would rotate in can be seen on the 24th, the next day that rotation came in to play, the recent slide from the earnings pop has not been confirmed by a 3C downside move, instead it's actually been positive.

A closer look at the Tweezer bottom specifically on the 15 min chart shows a positive divergence as well at that formation.