Apple Stock Chart Follow Up 3

1. RSI (very top) - As originally pointed out, the negative divergence setup took place and now we can see how it has weighed on the stock. The RSI is now tracing towards 50 and out of overbought range.
2. Moving Average Support - Apple has fallen through its 10 day moving average (MA), and is now finding support at its 20 MA.
3. Distribution Days - Two out of the last four trading days have been heavy distribution days, did we predict this sell off coming?
4. MACD Bearish Crossover (very bottom) - I stated in the first Apple post that Apple would end the week sour once a MACD bearish crossover occured, which is when the black line (12/26 EMA) crosses below the red line (9 EMA).

Also not drawn on this chart but can be seen when comparing to the first follow up, the ascending channel has been broken to the downside, another short term bearish sign.

So now what though? Well, we will be watching to see if Apple tests its current weekly low of $155.40 over the next several trading days, if this occurs look for Apple to possibly trend down to its 50 MA. If we were looking to buy in right now, the safest time would be when Apple gets out of the funk and trades up to new highs. If we are holding a long position, then stay long. And, if we are short on the stock, look for the stock to test $115 support, you could actually add to your short position with a trade through of this area. I would cover with a heavy accumulation break past $121, or if the stock falls under $110.