AAPL Apple Weekly Chart Negative Divergence

Despite the broad markets moving lower today, Apple jumps higher. The recent recovery rally is led by traders buying large cap tech with both hands. The iPad is selling like hotcakes and that will continue forever, right? The fact that folks are cutting back on monthly bills like cable, Internet, etc..., as well as buying electronics in general, does not matter when it comes to Apple, right? This chart say wrong.

Rising wedge, overbot conditions and negative divergence, AAPL is going to get spanked down from here. Keystone's 80-20 rule says when a ticker reaches an 80 level it typically prints the 20 level, thus, once 380 was pierced, 420 is in play, so for 8 or 10 bucks or so of upside, it is not worth it. The MACD and money flow over the last couple months (green lines) gives Apple a slight benefit of the doubt that as price falls it may provide a little M top action, but this chart is cooked.

Volume continues to trial off since the crash in August and even with this higher high today volume is still lower than four other large volume prints over the last two years. Take the money if you rode this bad boy the whole way, if not in it now, do not believe the hype, in a month or two you will look back and understand why. Projection is price topping now, sideways to sideways down for the weeks and months ahead. This information is for educational and entertainment purposes only. Do not trade based on this information. Consult your financial advisor before making any investment decision.