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Technical Analyst: Apple Is Due For A 'Garden Variety' Correction, Not 'Carnage'

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Apple Inc.'s (NASDAQ: AAPL) stock is higher by more than 20 percent year-to-date and more than 30 percent over the past year, which has some calling for a correction.

One of those is Tom McClellan, the editor of The McClellan Market Report. On Wednesday, he was a guest on CNBC to offer his take on why Apple's stock is due for a minor pullback.

McClellan explained that Apple's stock has been trading in the same direction as the broader Nasdaq index, which is a positive sign. Apple investors should be worried when Apple's stock is printing lower highs at a time when the index is printing higher highs, but this isn't the case, as Apple's stock held up on Tuesday despite the market meltdown.

'Garden Variety Correction'

With that said, Apple's stock could see an "ordinary garden variety correction" at any time and this may be happening right now as Apple's stock is about $2 off its all-time highs of $142.80.

Nevertheless, Apple's ongoing strength should give investors confidence that any correction won't result in "carnage." Also important to keep in mind is the fact that many investors are expected to pull capital out of the stock market ahead of the tax deadline.

Bottom line, McClellan said we simply aren't seeing any sort of dire warning from Apple.

See Also:

3 Conservative ETF Ideas For A Market Correction

3 Reasons AirPods Are More Important Than The Apple Watch

Posted-In: Apple stock CNBC Squawk Alley Tom McClellanTechnicals Tech Media Trading Ideas

 

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