AAPL was down 1.76% today and if this is the start of AAPL’s next leg down then the general markets will tag along and that’s all there is to it. If AAPL does not rebound tomorrow or soon after then you just have to be prepared for the fact that this little rally leg has run its course.
Daily chart of $SPX showing an indecision candle today. Since it’s a red candle it has to be seen as bearish for now. Last week we had a two day pull back and then pushed to a new closing high. Now that we’ve had two days of pull back, we should expect a snap back for tomorrow, and if we don’t get that then I’m going to start getting ‘sell’ signals on the daily charts.
There’s no way to know yet whether what we’re seeing is just some good old fashioned profit taking or selling in an effort to avoid the new capital gains taxes. $SPX traded 2.5 billion shares today, which is about right. I think that if we start to see heavier volume then that could be a sign of tax selling. That’s what I’ll be watching for.
GL and be careful.