Eye on AAPL and Impact on ES

Good Thursday Morning, MPTraders!  September 7, 2023-- Pre-Market Update: This AM's focus remains AAPL's pullback and its impact on the direction of the S&P (ES)... 

My attached 4-hour Charts of AAPL and ES tell the story for the time being:

In pre-market trading, AAPL reacted negatively to stories that the Chinese government has told its agencies to stop using iPhones, which pressed the stock beneath my corrective line in the sand at 180.30 and has followed through to the downside to a three-session pullback low at 177.00, amounting to a near 7% haircut since Tuesday afternoon. 

From a granular technical perspective, the downleg from 189.98 to 177.00 looks incomplete and argues for one more new low beneath 177 into the 175 area prior to my expectation of a potent upside reversal signal. Bottom Line: As long as any additional weakness is contained above the 8/18/23 low at 171.70, my preferred scenario for AAPL indicates another rally effort from support at 175 to 172 toward 185-190. To confirm a U-Turn to the upside, AAPL needs to climb and sustain above 180.30... Last is 177.51...

As for ES, although it has NOT yet violated yesterday's pullback low at 4447.00, the fact that AAPL did break 180.00 certainly adds pressure to ES to break 4447 and to head lower. If such a scenario unfolds, then I am expecting ES to press closer to 4400-4410, from where I will be expecting a U-Turn to the upside. Only a sustained breach of 4395-4400 will leave ES vulnerable to downside continuation for a full-fledged retest of the 8/18-8/25 Jackson Hole low-zone from 4350 to 4365... Last is 4448.00...

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