Bite Out of Apple

While the major market indices climb, Apple (AAPL) plunges in reaction to continued bad PR about iPhone4 and news this morning from AP (in USA Today) that a Federal Judge has given the OK for a monopoly abuse lawsuit against Apple and AT&T (T). AAPL has declined as much as $10, but the loss has stabilized at $8 for now.

Let's notice that the weakness has been contained above the near-term support line from the May 21 low (231.35), which cuts across the price axis at 245.70. A break of the trendline will argue for a test of critical support at 242.30/00, which if violated has the potential to send AAPL to 210-200 thereafter.

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