As I noted on last night’s video market recap, I covered my Apple short inside 12631 yesterday to lock in the win with the stock going up on bad news (downgrades). We are now moving on to the seemingly obligatory throwback or check back to the breakdown from the higher low thesis.
Once we get this initial throwback formality out of the way, the real test comes as to which side will win out. Bears must arrive on the spot and press price down again, not giving the famously resilient Apple bulls a chance to pounce on yet another bear trap sprung. A close today above $526 likely puts bears in the hot seat again and sets up room for further upside.
I would love to re-short Apple soon, but I need to see signs of rejection up here first.