A Quote from IBD.
“Apple (AAPL) showed its best daily action in several weeks. The stock slid 3.8% in the first half of the session and then reversed higher to finish with a small gain.
The close was near the day’s high, and volume was more than twice its usual pace — all good.
Apple, though, remains 25% off its high, and couldn’t avoid another weekly loss.
The stock has now declined for eight weeks in a row — its longest losing streak on the weekly chart since September-October 2000.
The depth of Apple’s current decline also is disturbing. From the start of the bull market in March 2009, Apple has declined from a previous high 14 times.
The current drop took the stock as much as 28% off its high, which is a deeper pullback than any of the declines since March 2009, including the Flash Crash of May 2010.
Is Apple now finding a bottom, or is it headed lower?
Given Apple’s weighting in the Nasdaq (currently more than 9%) and the heavy institutional presence in the stock, the question matters to the market.
If Apple is about to rebound, the stock could help pull the market out of its current ennui. If Apple is headed lower, it will be a drag on the index for some time. Yet, if institutions lighten up on Apple, that could free a lot of money to go elsewhere.”
Read the entire post at IBD.com