Apple Rebound Hits A Pause

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Apple Inc. AAPL shares were trading higher by $4.20 at $107.32 in Tuesday's session. Following a Wells Fargo upgrade from Market Perform to Outperform, it rallied to $111.11 off the open.

That caps a nearly $20 rally from the $92 low that was put in place off Monday's chaotic open. The current intra-day high ($111.11) is shy of Friday's high ($111.90). Considering the S&P 500 index index futures did not come even close to Friday's high (2029), it has shown incredible relative strength during the last two days of trading action.

One has to wonder if the index cannot hold the gains from Monday's panic low, will Apple be the leader on the downside?

Since making its high for the day, it has retreated to $107 and managed a small bounce. If the decline continues through the intra-day low, there may not be any identifiable support until Monday's close ($103.12).