Thu January 18th 2007
Near-Term Peak in Appleby Mike Paulenoff,
www.MPTrader.comIf we take the liberty to draw-in the aftermarket, post-earnings
spike in Apple (Nasdaq: AAPL) to a new all-time high at 99.48, followed by a plunge to
93.25 (close 93.99), notice what we are left with: A key downside
reversal bar off of marginal new highs! The vast majority of the
time, such a reversal spike signals a near term trend change,
which in this case, would argue that AAPL has ended its most
recent upleg off of the Dec. 27 pivot low at 76.77, and EITHER
will carve out a sideways range (between 97.00 and 90.00 for
instance) for the next 2-3 weeks, OR embark on a stair-step
downside corrective process that points towards an 80 target
zone. In both cases, the UP-trend will be transcended into either
a sideways trend, or a near term corrective down-trend. Bottom
Line: Although AAPL might attempt another rally, the overall
technical picture argues that a significant near term peak has
been established-- in the aftermath to the earnings news.
MJP 01/18/07 9:10 AM ET 92.92, SPY 143.31; DIA 126.04;
QQQQ 44.83
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