Has Apple's Recovery Rally Ended?

Purely from a technical perspective, the Tues-Wed climb in Apple (AAPL) above 647.20 to a recovery high of 652.79 should have triggered upside continuation from a near-term double-bottom formation.

The fact that yesterday's pre-open high at 652.79 turned out to be a bull trap tells us something loud and clear: The bears are still in control of the dominant downtrend off of the July 21 high at 705.07.

In addition, all of the action off the October 9 low at 623.55, into yesterday's recovery high, likely represents a completed counter-trend rally within an incomplete, larger-corrective process.

If such a scenario proves accurate, then AAPL is heading to new lows beneath 620, towards 610/00. Only a climb above 652.79 will invalidate the still-bearish near-term outlook.

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