How Far will AAPL Decline During Market Sell-Off?

Yesterday, S&P 500 finally closed below 1,040.  This is really not a good news for Longs.  The stock market will continue to be negative momentum until it can close above 1,040.  Until then, I
am now expecting S&P 500 to dip all the way down to $900 range.  This Friday will reveal a key jobs report.  The market will quickly move in the direction of the tone of the report.  Any signs of negative data will cause traders in sell mode prior to 4th of July  weekend.

Let’s take a look at AAPL as to how much it will decline during this market sell-off period.  Below is a 2 year weekly chart of AAPL with its Fibonacci Retracement levels using weekly high of $270.83 and weekly low of $82.33.  If the market continues its decline, we could easily see AAPL reach its 38.2% retracement level at $198.

23.6%   @ 226.344
38.2%   @ 198.823
50.0%   @ 176.58
61.8%   @ 154.337

Other Posts: 
Learning Fibonacci Could be Worth Your Time! 
Learn To Spot Divergences using RSI 
What Lessons Can We Learn From Worst Performing Stock in 2010?

No comments: