The Apple Natives are Growing Restless

Apple was in an excellent position to build on its higher low after last Thursday’s high volume intraday reversal. There was genuine fear amongst traders, and the stage was set to sprint much higher. I pointed out a bullish MACD cross and subsequent backtest that needed to be watched. However, follow-through is critical to any market thesis. The idea was to patiently stalk if there was, in fact, upside confirmation of the thesis.

One week later, Apple has seen a bearish MACD cross back down through the signal line. In addition, buyers of size have not presented themselves to support what is now a very obvious higher low, with low buy volume the norm since last Thursday.

Be careful if you are long Apple here. This trendline highlighted below is widely-watched with plenty of stops likely just below it. I expect a swift move below $500 if it is lost.

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