Apple's Chart Looks Ominous

Boy OH Boy!

Here is the weekly chart, for Apple Inc. AAPL.

There is a shot that it may eventually break the neckline of a decent head & shoulder top! There is no reason to get too excited either way at this point; as of now it is sitting on support.

The long term weekly line chart is at the point where its either going to bounce and rip or its going to break the neckline and go down to possibly $70. That is over a 40% drop. If it breaks the weekly neckline which it’s Right ON..we would expect a min objective of $70.

Here is what we know:

1. The A/D line is Bearish on the NYSE.

2. 20 stocks in the S&P 500 are propping it up.

3. The other 480 are down significantly for the year.

4. Junk Bonds are trashed.

5. The dollar is up which doesn’t help commodities; speaking of commodities, those are just as depressed.

6. Deflationary pressure could continue to hurt Equities.

7. Dow Transports are in a death spiral.

8. The treasuries are rallying even with rising rates!!! They should be SELLING OFF.

Don’t think Apple can go down a lot? Look at this chart from September 2012 HERE.

The old chart from 2012 had a double negative. The 1st high showed a short term negative RSI divergence, then a new higher high but the RSI showed another lower low. The stock dropped over 50% from 2012 before bouncing back later in 2013.

Its not time to run through the streets and declare the “End Is Nigh!”, but it’s one to keep your eye on. If it held here and the other indicators start looking less like the grim reaper, it could be a great buying opportunity. We can all surmise that if it doesn’t it could get ugly, and fast.

Apple has been lagging with Tech being up most of the year and given what we discussed we “KNOW” above; this slice is tasting a little sour.

“I’m Kimberly Swartz and that is how it is. Goodnight.”

This post was originally shared on Captain John's Charts.

For more from Kimberly Swartz, check out her twitter feed