Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
Apple (AAPL) is among a handful of glamour stocks that are avoiding today’s selloff, it is up over 1% in fact. This morning it trailed up the $580 level which filled the gap down from early November. Recall, despite nearly two months of steady selling most of it was quite orderly and this was a rare day the stock actually gapped down and never came back to fill it intraday so it was an unresolved issue. If you are a bear, you want to see a gap like this filled since it would be hard for the market to roll over without the most important stock in the galaxy rolling over. Now that this gap is filled the stock does not have a magnet to run to on the upside. If you are a bull, of course, the stock is completely ignoring any pullback in the market and finally showing relative strength.
That said selling is relatively contained and expected after last week’s big run. I mentioned 1395 and 1404 as resistance levels last week – they barely ended up being so, but they are obviously potential supports now as well.
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