Here is a brief commentary from Panzner Insights, which I posted on Friday:
As the chart shows, Apple's stock is tracing out a textbook head-and-shoulders top.
While key support has not (yet) been breached, the fact that the stock's index-relative trend is trading below comparable levels—which normally indicates that institutional investors have been heading for the hills—suggests that it is only a matter of time before the share price follows suit.
There are no guarantees, of course, but standard technical analysis points to a minimum downside target of $300 on the absolute chart, and 20 percent-plus underperformance versus the S&P 500 index.
Given that the broad market peaked around the same time the world's favorite stock did, it might be a good time for those who are betting on further upside for U.S. share prices in the weeks and months ahead to have a rethink.
