Apple Stock (AAPL) Violates Price Support, Could Trigger Tech Correction

Apple’s recent decline in stock price broke through its multi-month up-trend… and this can not be called anything but negative.

From a macro technical perspective, this should put pressure on Technology as a group considering AAPL’s presence within various ETFs and indices.

Though oversold rallies and a potential backtest of the breakdown may occur, initial targets lie near 124. And a break below that level would warn of a more meaningful decline into mid-March.

Short-term active investors (traders) should consider lightening up as it’s likely this stock has begun a more meaningful decline if Wednesday’s price action is any guide.

apple stock price breaks up-trend line bearish indicator chart february 18

Other major market indicators are flashing caution as well…

Market cycles indicate Feb 18/19 “should” be a time when stock indices turn back lower. This is double the length of the initial push off the March lows into September and lines up with Gann’s mass pressure chart to show the start of a decline into March. Thus far, it’s tough to say we’re there based on Wednesday’s strong close… but something to put on your radar.

As well, Demark exhaustion is in place on daily, weekly, and monthly charts of QQQ and SPY. This setup supports the idea of a correction into March.

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Twitter:  @MarkNewtonCMT

Author has positions in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

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