I’ve used a conventional ABC pattern to project a 158.43 rally target that looks all but certain to be achieved. Shorting there is another matter, however, since it coincides with a distinctive peak recorded on September 21 that will likely figure prominently in the plans of the algos and EDTP (electronic day-trading platform) whizzes we go up against every day. My preference would be to anchor the ‘c’ high of a reverse pattern three points above the target and to use a 14-cent trigger interval. This one’s for subscribers who are comfortable with rABC trades. _______ UPDATE (Nov 2, 4:54 p.m.): AAPL has fallen hard after failing to reach my 158.43 target, let alone push above a key ‘external’ peak at 158.74 recorded on September 21. This is a telling sign of weakness to come and a reason to be cautious about buying into rallies. Expect this selloff to continue down in to the mid $130s.
AAPL – Apple Computer (Last:145.00)
