Percentage-wise, the stock is now at a point that matches its August fall. Between late July and August 16, AAPL went from 146 to 117, bottoming out with the rest of the subprime mortgage sludge at a 19.8% drop. This month, AAPL has collapsed from 191 to today's low of 153, a fall of 19.8%. Back in August, the stock spent six sessions below its 200-day simple moving average before bouncing back up. In all, AAPL traded below its 200-day SMA for nine trading days. Today, AAPL went below its current 200-day SMA for the first time.
In the summer, AAPL took 14 sessions to drop from 146 to 117. This time, AAPL has gone from its new high to today's 153 in just four sessions, eliminating six weeks worth of gains.
Though the RSI is now at 33, virtually the same as it was on Aug. 16 — the bottom of the summer swoon — I'm not optimistic yet. When AAPL's stock rallied after the August swoon, the 10- and 50-day SMAs already crossed over (on Aug. 15). Right now, AAPL's 10- and 50-day SMAs are nowhere near crossing over. Yet.
In addition, volume to the downside increased today from Friday. Though the stock was up a few dollars to 167, it slipped badly and hit an intra-day low of 150. The increased volume, though, is astounding. Not a good sign for Apple bulls.
A trader's market, indeed.
(Note: corrects the SMA info from 200-day to 50-day.)
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