Apple's Correction Over - Market Analysis for May 7th, 2012

At this morning's low of 560.30, Apple (AAPL) had retraced 92% of its post-earnings advance from 555 to 618.22, which definitely qualifies as a deep correction of the prior upleg.

As long as any forthcoming weakness holds 560.30-555.00, my pattern and momentum work will indicate that AAPL ended a significant corrective leg on April 24, and that either a powerful new bull leg is in its infancy or that forthcoming strength represents a rally within a larger, more complex intermediate term correction that will resume from the 610-620 area.

This means that if either of my scenarios is relatively accurate, AAPL has just started a potentially powerful rally period.