“Tech stocks lagged on Friday as strength in the transportation, energy and select retail sectors helped boost at least two of the key averages,” David Saito-Chung writes for Investor’s Business Daily. “Apple, meanwhile, appeared poised for a fourth up week in a row.”

“Apple is up more than 1% to 159.84, up mildly from an Aug. 2 breakout past a 156.75 flat base. That base is second stage,” Saito-Chung writes. “The correct buy zone for Apple goes up to 164.58, or 5% past the 156.75 proper entry.”

“The prospects of further gains in Apple still look intact. One reason: the most recent base is second stage,” Saito-Chung writes. ” A high-quality company tends to thrive when coming out of a first, second or third stage base. Fourth and fifth stage bases tend to bring out more sellers and put a breakout in doubt.”

Read more in the full article here.

MacDailyNews Take: But, what do the entrails say?

Ah, we do so love haruspices, er… technical traders.