Why Apple And The Market Need To Retest The Lows

On August 24, Apple hit a low of $92 – though, according to Harlan Pyan, the "real low" in the stock is at the $102.50 to $103 range.

Apple 'Is The Index'

Pyan said that he would like the stock to retest those lows, noting that his bias at that point would be to go long Apple around those levels, assuming those levels do not break.

If Apple were to move back toward those levels, Pyan suggested that the market – both the Nasdaq and S&P 500 – should move back toward its lows. That's because Apple "is the index. It literally mimics the index to a great degree," Pyan said.

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If the market rolls over, Apple rolls over – and vice versa, Pyan noted.

At present, however, with Apple trading at $113, the stock is "in the middle of no-man's land." And when in between levels, Pyan recommend that traders should shy away from initiating positions. However, they should ask themselves "what you need to see to take a trade." Again, for Pyan that would be a price around $103 per share.