The most bearish of the “Magnificent Seven” stocks relative to the S&P 500 (SPX) is Tesla Inc. (TSLA). The next most bearish stock is Apple Inc (AAPL). The action of AAPL from its December 2023 top suggests it could be on the verge of a sharp decline.
The weekly AAPL chart courtesy of Trading View illustrates the big picture from 2021.
The weekly AAPL chart courtesy of Trading View illustrates the big picture from 2021.
The best Elliott wave count for the SPX is that a multi – year Expanding Flat could be forming from its peak made in January 2022. The AAPL weekly Elliott wave supports that theory. The second phase of the presumed Expanding Flat – labeled Primary wave “B” peaked in December 2023.
The daily AAPL chart focuses on the action from its July 2023 peak.
Using standard Technical analysis chart patterns, the AAPL July 2023 and December 2023 peaks are a classic example of a double top.
What’s happened after the 12/14/23 top is fascinating. It appears AAPL could be forming an Elliott wave series of “one’s” and two’s”. In a downtrend this is the most bearish Elliott wave formation.
If AAPL breaks below its 02/02/24 bottom at 179.25 there could be a very fast move down to 165.67 – the 10/26/23 bottom.
AAPL is very weak relative to the SPX. Today 02/15/24 SPX ended the trading session marginally below the peak of its October 2023 to February rally. AAPL has nearly retraced 50% of its October to December rally. Someone that bought AAPL on 11/14/23 is now losing money.
Not a magnificent performance.
Four Dimension Trading 