We continue to keep close tabs on Apple, since it is the most important stock market bellwether in the world right now. Generally speaking, the broad averages cannot make much headway if Apple is weak, nor can they fall very far if AAPL is strong. On Friday, the stock exhibited mild weakness by penetrating a minor Hidden Pivot support at 128.55 that I’d noted the night before.
The support had held on the opening when DaBoyz took the stock down to 128.59 on the initial price bar of the day. Although the $2 rally that followed looked encouraging, AAPL subsequently fell anew to an intraday low of 128.24. The fact that it closed at 128.45, beneath the midpoint pivot, is not a welcome sign. I have redrawn the pattern, replacing it with one of greater clarity that points to as low as 125.29 over the near term. The target would become no worse than an even-odds bet if AAPL breaches its midpoint ‘sibling’ at 128.08. Night owls should take care, since the stock has acquired a menacing new habit of spasming far outside of its normal price range at the beginning of each new off-hours session.