As we described in our previous note on Apple (see Here), we have used the historic momentum comparative with oil as a mean reversion template of similar market character. Today, Apple has made its way back to its linear regression trend line, that from a long-term perspective is a bullish benchmark and testament that the final chapters in its illustrious growth story have yet to be written. Even more impressive when one considers the magnitude of its growth - as exemplified in its steepness of slope.
With that said - and as shown below with the regression profile for oil fitted to the slope of Apple today, we expect another consolidating sweep lower as the regression lines have served as the upper limits of the respective recovery range.
For further reading on this concept - see some of our previous Apple notes:
