2022-11-04

Apple is Done

The most important stock in the major indexes is probing a new low for the day and could break a moderately important trendline that has been support for 2 years. Not a major line, but the next levels I'm watching are long-term support at about $123 by November 18 monthly option expiry and the gap at $95. That's a 10 percent loss to the support line. The ratio chart it busted. I don't view that as a tradable chart, but it is an important chart telling me Apple is in the process of giving up its market leadership.

I don't know how the broader market will finish today with bulls still rampaging, but I have hard time seeing surging asset prices, surging gold, oil, copper, gasoline and so on as being sustainable. If the commodities keep rising like this, then inflation is going to surge higher and the Fed will look at the strength everywhere and see no problem with faster rate hikes.

If Apple falls below the October 13 low of $134.37 today, that might be enough to take the whole market down.

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