Click on Chart to EnlargeThere are notes on the AAPL chart above. Basically this basing formation is showing heavy distribution relative to accumulation. So this base is probably failure prone and may signal that the broad market will correct. It actually looks like the market will try to bounce from here, AAPL included, but I would be very skeptical of any breakout buying on AAPL.
Click on Chart to EnlargeAgain further notes of this faulty basing structure.
As a side note. It is very important to note non-confirmations of the prevailing trend. If AAPL is a leading stock, why would it not make new highs with the market?
Also, if the tech sectors have been the strongest in this bull market, why are they not confirming the recent market highs relative to February highs?
Is the leadership of XLP, XLU, and XLV (consumer staples, utilities, and healthcare) a good sign for continuation of a major advance? Or is it a sign of psychology shifting to defensive mode?
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