Apple Falls from the Tree
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In less than thee weeks, Apple has declined almost 9% in value, while the S&P 500 is flat.
Did something take place to suggest this would happen? It just might have.
The chart below reflects that Apple might have created a Doji Star Reversal pattern on the week ending 9/22 at (1) in the chart below. Since that pattern took place, Apple has reflected unusual relative weakness!
Apple falling 9% doesn't mean the broad market is in trouble. However, a Doji Star formation at the top of Apple's rising channel does suggest that the tech sector could show a period of relative weakness.
If the NYSE A/D line starts to reflect weakness and Apple continues to fall more than the 500 index, one might respect that message!
Keep a close eye on Apple from this point forward as further Apple weakness could spill over into the broad market.
(c) Kimble Charting Solutions