I think AAPL is toast. Today’s little affair did nothing for the stock, except slam it to the mat. When was the last time something like that happened? 2000?
We’ve gone into extreme oversold status on a couple of indicators, but there are still plenty that are not confirming.
$TRIN closed at 2.79 so this is way oversold.
87% of volume went into declining issues so this, too, is showing oversold.
$NYUPV closed at 78, which is extreme oversold.
4wk New High/Low Ratio closed at 10.93, which is extreme oversold.
Really like to have 4-5 other indicators confirming, which is not the case here, so while we could bounce out of this short term oversold situation, the bounce is likely to be sold into and that will be that, IMHO, of course.
Daily chart of $SPX showing it quickly approaching the next important support level in the 1397 area. If buyers don’t rush into the market there, then we could see $SPX drop another 40-50 pts to the next support level of 1354. Not saying that’s where we’re headed but it is a possibility.
When I mentioned those Fib projections for the Q’s over the weekend, I obviously made a mistake. Instead of saying that the next projection level was 65.44, I said it was 64.42 and that we were essentially there. That was an error on my part. So, the next Fib projection was, at the time, 65.44, and we are there now. The next Fib projection is 64.42 and while we’re not going straight there, we are headed that way. The only thing that would negate this would be a close above 68.30 before we get there and I don’t think that’s going to happen.
Be careful and GL