When AAPL slightly exceeded a 135.96 Hidden Pivot target on the weekly chart Wednesday, I took it as mildly bullish. Although I missed nailing the top by just 1.5 %, I’ve gotten so used to hitting the big swings within a dime that I brashly assumed bulls were still in charge and simply taking a breather. That could still prove to be the case, although it may be a few weeks before we can judge. In any event, Thursday’s 12.7% plunge has altered my perspective, since it increases the odds that a major top is in. You can see in the graph that the record high achieved earlier this week maxed out bullish possibilities on the weekly chart. There are no alternative patterns to the one that projected to 135.96, and the only way to create a new one would be for AAPL to effect a healthy B-C corrective leg from the recent, record high. It would need to be followed by a rally of exactly $12.21 to revive the bullish case. This could take four to six weeks to unfold, and it would be surprising if it were to happen in significantly less time. For related reasons that I made clear here earlier, it is very unlikely to happen all if the dollar is carving out a major bottom right now, as seems possible.
AAPL – Apple Computer (Last:120.88)