AAPL soars, market soars. AAPL plunges, market yawns. Sure, makes sense to me. One can only guess as to how much effort went into propping up the markets this morning in the wake of the earnings miss.
Regardless, AAPL has gone
exploring spelunking lower Fib levels and the rest of the market is up, which presumably means we’re presently on the right side of the market.
AAPL should firm at 450.85 this morning — the 1.618 of the Crab pattern dating back to Nov 16 at 505.75 (light blue.) Personally, I’m an enthusiastic buyer at these levels (with stops, of course.) I previously set the large white pattern Point X at 354 on Oct 4, 2011.
But, the biggest reason of all to be short-term bullish on AAPL is the purple channel — the bottom of which AAPL just tagged. The stock could certainly fall below it, but this sucker dates back to the year 2000. I have a hard time believing the channel will fall after what amounts to a minor estimate miss.
Does the company have problems? Sure. I worry about the obvious decline in customer service and a slowing product cycle. But, it also has the means, the manpower and the motivation to fix what’s ailing the stock price.
UPDATE: 1:15 PM
The markets have sold off from their highs, but seem to be finding RSI support. APPL is, doing the same. For those who find the bounce idea compelling, here’s another chance.
Watching to make sure the price channel and RSI channel both hold on SPX…