Today's sudden weakness in Apple (AAPL) that has pressed the stock from 547.48 to 526.00 has inflicted damage to the nearest-term uptrend off of the Jan 25 low at 419.00, which cuts across the price axis today in the vicinity of 533.40.
Let's notice that the weakness violated the trendline, but has since climbed back above it. Today's close in relation to the trendline will be very important technically. In addition, we cannot help but notice the very negative juxtaposition of my 4-hour RSI gauge with the price pattern, which continues to warn me that at just about any moment AAPL could roll over into a sustained plunge that revisits the prior corrective low at 488.50 on Feb 10.
In any case, today's action appears to have broken the back of the latest swarm of "come lately" longs who have piled into AAPL without fear of any downside at all.
Originally published on MPTrader.com.
