“Three clues would help IBD readers identify that Apple has arrived at an equilibrium between buyers and sellers — and is raising its chance of forming a complete base,” Saito-Chung writes. “One, look for big reversals off intraday or weekly lows. If, for instance, Apple falls more than 5% during the week but ends the week down fractionally or even up, it indicates fund managers backed up the truck to load up on ‘cheaper-priced’ shares.”
“Two, monitor the volume on the down days. Thinning turnover on the declines, followed by advances in heavy or higher volume, would suggest that the sellers are exhausted,” Saito-Chung writes. “Three, watch for an improvement in Apple’s Accumulation/Distribution Rating. This letter grade goes from A (heavy net buying by funds) to E (heavy net selling) and covers 13 weeks’ worth of price-and-volume activity.”
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MacDailyNews Take: Apple’s Accumulation/Distribution Rating currently stand at “E,” according to IBD Stock Checkup. Volume was slightly above average as AAPL fell 3.57%.