These are the ten stocks in the S&P 500 with the highest market capitalization, and they will have a significant effect on the movement of that market index. A quick review will show that they are all going through a topping process, which could prove to be an important turning point, or just a “pause to refresh.” It is certainly good reason to stay alert and see how the process resolves on each one.
Apple (AAPL)
The biggest of the big, AAPL influences the movement of the markets. For this reason, it’s important to know its chart. Like the major markets, Apple is sporting what could be considered a double-top, but I also see another bearish formation, descending triangle. Regardless of which it is, the minimum downside target remains the same at a conservative $85-$90. Additionally, there is a reverse divergence between price and the OBV. Note that OBV tops rose slightly, but price tops did not. Despite the influx of positive volume, price wasn’t able to even challenge that September top. You can see the 4:1 split annotated. Carl pointed out on the DecisionPoint Show just prior to that split that typically you will see a decline after the split and here we are.