I had to run out all morning and was a bit discouraged to see the market trading quite a bit higher when i checked some quotes on my phone earlier. The one thing that stuck out though was that the most popular kid on the block somehow must not have received an invitation to the party (rally) today. As i’ve said before; “Live by AAPL, Die by AAPL”. Although I am still waiting for a breakdown of the rising wedge pattern, today’s significant under-performance by the lead sled dog marks the 2nd test of the bottom of the wedge this week.
Again, support is support until broken so I still suggest holding off adding to the AAPL short and/or any broad market shorts until AAPL makes a solid break below the rising wedge pattern but I did want to point out not only today’s relative under-performance to the broad market and also point out the significant increase in volume on the recent move lower on AAPL since the wedge overthrow. That increased volume on the move back into the wedge since the overthrow only helps to validate my primary scenario on AAPL and increases the odds of this pattern playing out. With that horizontal support level around 644 just below the bottom of the wedge, I think it would be prudent to wait for a break below that level before adding to or opening a new short position on AAPL (or the QQQ).
