Apple Correction Incomplete, SPX Looking Lower
While the chart pattern of Apple (Nasdaq: AAPL) certainly looks much stronger than the overall market (SPX), all of the action since its peak in late-April has the right look of an intermediate-term corrective process that is incomplete. Both the pattern and the momentum configuration argue for AAPL to press towards a revisit of the 240-230 support area in the upcoming days/weeks prior to my expectation of another upleg within its otherwise still-intact bull market.
As for the market as a whole, based on my weekly technical work of the S&P 500 (SPX) as of Friday's new multi-week closing low, the price structure is poised to retest the May 25 intra-week low at 1040.78, but also should continue still lower to a next projected target of 1000. The 1000 level represents key psychological support as well as downside follow-through of 6% that approximates the magnitude of a prior decline during June 2008 (almost exactly 2 years ago) that exhibited a similar price-oscillator set-up. If 1000 is violated and sustained, then 994-990 becomes the next optimal target zone. From a weekly chart perspective, only a climb above 1107 will neutralize the current negative medium-term conditions.
