Get AAPL right and you get the stock market right. I’ve repeated this adage many times, and it has been borne out consistently. However, it is about to be crucially tested as the stock falls to a compelling midpoint Hidden Pivot support (p) at 128.24. We’ll have to see how sellers interact with the support before we can judge whether more downside to D=104.74 is likely. However, the A-B impulse leg on the weekly chart (inset) is sufficiently powerful to suggest bears eventually will win this battle, even if it takes 2-3 months to play out. That would represent a 42% haircut for the most valuable stock in the world, and a deflationary juggernaut for portfolio managers’ balance sheets.
AAPL – Apple Computer (Last:137.13)