Apple Shows Signs Of Key Break Down
Apple Inc. (NASDAQ:AAPL) has been stuck in purgatory for weeks now, trading sideways to lower. It did not matter if the markets were sharply higher or lower, Apple continued to trade flat to lower. This pattern for many is known as bullish consolidation but the price action was unbelievably poor. The leader of the technology sector was no more! This was a direct alert that the bullish pattern may fail. As of Friday, May 13th, the pattern failed with a close below two major moving averages. These moving averages had been the support level for the bullish consolidation pattern. With a close below, the downside may come fast and furiously. A possible drop to the 200 moving average at $320.00 is likely in the next month. Always remember, a failed pattern in one direction usually results in a major move in the opposite direction.
Another stock worth noting is Amazon.com, Inc. (NASDAQ:AMZN). Amazon looks to have finally put in a pivot top on Friday at high of $206.39. This high will confirm today as a pivot top if the closing price on the stock ends lower than the lows on Friday. That looks likely at this point. Amazon.com would become a short on any solid bounce back towards that pivot top.