AAPL Update

AAPL is a pretty good example of a few things mentioned yesterday and what we are seeing early in the averages.

 Unlike most of the averages reacting to yesterday's positive divergence on intraday charts, AAPL has remained in a consolidation. I was hoping to see the averages move up early because as long as they are up, the chances of them building a stronger divergence that could give rise to a more powerful or sustainable move remain low. AAPL on the other hand is not moving early and it gives AAPL the chance to build on a divergence to give rise to a stronger or more sustainable move, although not that much strength has built in, I do think it's enough to bounce AAPL and that is where all who emailed me yesterday asking about starting put positions will want to look at starting a position, in to price strength with underlying weakness. Had you opened a put position on weakness yesterday, chances would be pretty good you would have paid a much higher premium and seen draw down today whereas a little patience might offer you a better opportunity at a lower premium today.

 As you can see the DIA's early move has not allowed it to accumulate, in fact the opposite, it seems to be under distribution intraday on price strength and as I mentioned, this is what I had hoped to see rather than let the averages consolidate and build a potentially stronger move. At this point the move in the DIA looks like a technical bounce and that's it.

 AAPL 2 min is building a bit, but this is still nowhere near a strong divergence, it may be enough to get movement and an opportunity, but it is not enough to cause me much in the way of concern.

 The 3 min chart's divergence thus far is a weak relative positive divergence, as I said, it may be enough to get movement for some potential opportunities, but it is not enough to overcome the degree of damage that was done yesterday.

 The 5 min chart is barely positive here.

At 15 mins, the damage is clear from yesterday, if this were scaled out you'd see it's bigger than it appears.