On April 19, Apple made a low at $385.10 and over 2 months later on June 28 made a secondary low of 388.87. During the past 5 weeks Apple has been steadily moving higher. On July 29, in accordance with our proprietary methods, Apple generated a short and intermediate term buy signal. This has not occurred at any time since Apple began its slide on September 21, 2012.
According to our method, usually after the generation of buy signals, there is a pullback that lasts 1-2 and possibly 3 days. We think the extent of the pullback would be to the 50 day moving average of $429.50. Our initial short-term targets for Apple are $470.00, 485.00 and 497.00.
Keep in mind, Apple is subject to broad market risk (as are all stocks), and if the major indices take a major dive (which we think is imminent), Apple, like most stocks would be to be engulfed by broad market liquidation. However, we definitely think the worst is over for Apple.