Yet Another Downswing





The chart of AAPL below shows the daily number of Climax High sell signals as the red indicator line in the top window. It's been spiking upward lately, capping off a nice up-streak stemming from the massive surge in Climax Low buy signals back on October 4th. This is shown by the blue indicator line in the second window. Note the spike up to 1530 stocks showing buy signals (relative to about 3000 stocks total), a couple weeks ago.

The price chart is annotated with several colored candlesticks or "paintbars" which flag key technical conditions. New highs are shown in bright green. Climax High sell signals are marked in red, and Climax Low buy signals are blue. The purple paintbars indicate Pristine buy signals.




Of note here are the two recent red sell signals. The latest one came as the price challenged it's former high.Two days later (today) the stock responded by gapping down about 5% on big volume.

We've mentioned before about AAPL being a proxy for the broad market. It's a leading stock, with high relative strength, and high trading volume, and broad ownership, and as such it "leads the way".It's been going up for quite a while, and when it starts going down the rest of the market will follow.

Here's the chart:

annotated stock chart for AAPL

Almost forgot to mention, there was a Climax High sell signal in the Nasdaq on Monday. Here's the chart - the signal is shown in red:

stock chart for the Nasdaq composite index