AAPL Update and Example

AAPL is an example of a stock that moved to the upside today and broke through an important resistance level, BUT still needs to consolidate before we can count on a solid move higher. If this were all the divergence that AAPL would put in and we had to go long on what has been put in thus far, I would not be re-entering AAPL on the long side, it needs time, it needs to consolidate, this is healthy and gives us better confirmation and higher probabilities for a much more impressive move.

The Q's (QQQ) are a good example of  tight range today, I suspect though with an AAPL pullback that range will loosen up a bit. I'll cover the QQQ next.

 Take a look at the ROC on the AAPL 5 min chart, note how AAPL stayed almost perfectly lateral before breaking down, but ROC showed the probability of the breakdown long before price action did, it also went positive before price action did as did 3C and the reason I opened the Calls in AAPL Friday for a 13.5% profit today (apparently there was more that I left on the table).

 The 3 min chart in a leading negative divergence before AAPL broke lower, this is the same kind of range that is important to a downside move just as a range is important to an upside move; this is where we typically see the heaviest institutional activity and I think part of the reason is the stable prices which are in part created by the middle men filling the orders at VWAP like market makers.

 The 10 min chart was very negative, leading in fact before AAPL broke in price. Note how I use the red box to illustrate not only the leading negative divergence, but the top of the red box is like a lateral trendline under price. We have a leading positive today, but not the range yet, APL need to come down to create a range and put in further positive divergences.

 Here the intraday 1 min chart shows the probability of an intraday reversal to the downside in AAPL, this is needed to create a stronger base for AAPL to bounce/rally from.

 Even though the 2 min chart went in to a leading positive divergence today, it is also showing the probability AAPL pulls back on an intraday (at this time in the day-a day to day) basis.

I'm just guessing, but perhaps AAPL's range looks something like this.