Sellers obliterated the 187.47 ‘midpoint support’ of the pattern shown last week, clearing a path for more downside to at least D=175.31. Any one- or two-level rally in the meantime would set up an attractive ‘mechanical’ short. Bottom-fishing at D will be a high-odds play as well, although the pattern, even though an rABC, may be too obvious for a penny-ante stop-loss. In such situations, shorting puts is likely to be a better tactic than buying calls.
AAPL – Apple Computer (Last:181.17)