Wednesday, July 27, 2011

AAPL Needs To Correct

I am having a little trouble reconciling the idea that the SP500 may be near the end of wave (E) with the fact that AAPL has run up sharply off of its June low and is only now beginning to correct.  At the least a correction in AAPL should last two weeks and maybe much longer.  Will the broader market head higher without it?

Theoretical we could be as few as a couple of days to two weeks from a low in the SP500 that would satisfy the triangle pattern.  However, given the situation with AAPL I am wondering if wave (E) will extend out in some way into September or even October.  It is certainly possible.

The McClellan Oscillator finished in an oversold condition today suggesting that some sort of bounce may be coming in the next day or two.  However, it should be short lived.

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