AAPL Update

All 3 Major Industry groups are now trading in the red, seemingly the negative divergence from Friday, VERY solid on 5 min charts, but present as newly formed since last Thursday all the way pout to 30 min. suggested motivation and pretty strong underlying action to move out of positions, even the average trade size in ES on Friday has many ES traders saying there was net and heavy selling.

This in no way answers any questions about QE3, but it does give some evidence (Really no follow through move since Thursday-global markets aren't very impressed with Asia down overnight and Europe languishing) and starts us on a path to gather the additional needed information.

AAPL is useful as a market indicator and for trades. The strength we saw pre-Iphone 5 release is dissipating rapidly.

 With a break above obvious resistance and a small bodied candle (Star) on Friday, today AAPL "could" put in a bearish engulfing candle which would make the probabilities of a downside reversal much higher.

 AAPL 1 min chart

 1 min chart's trend since last Thursday.

 This is part of the strength we saw in AAPL before the I-phone release last week, since it has faded badly.

 The 5 min chart showed the strength in AAPL at recent lows, VERY clearly with a leading positive divergence, that has now transitioned in to a growing leading negative divergence.

 Since the positive divergence is visible on the 15 min chart, I took a look and as is usually the case, AAPL's negative divergence started with a weaker relative negative divergence followed by a stronger leading negative divergence (the upside positive divergence developed the same way).

This may be too far out, at least to count on the longer relative divergence, but the leading divergence is newer information.