The spectacular gap left on the charts by yesterday’s cliff dive (see inset) is going to pose formidable supply problems for DaBoyz — but also for the stock market as a whole, since Apple is one of the largest companies in the world based on the value of its shares. Although we can’t rule out the possibility that this is yet one more shakedown, and therefore a buying opportunity, it has real causes, including intense and increasing competition for smart-phone sales. We’ll know better whether it will take weeks, or perhaps months or longer, for the stock to get back on track once we’ve seen what kind of follow-through (C-D) leg bears are able to generate. If bulls are going to romp in 2014, the downtrend should reverse from the ‘p’ midpoint pivot of the follow-through leg.
