“Apple is trying to build a bottom after falling as much as 25% from an all-time high of $233.47,” David Saito-Chung writes for Investor’s Business Daily. “While a 25% decline might seem like a great time to load up on shares, be mindful of the fact that big market winners, in constructing a new solid base pattern, can fall as much as 33% to 35% from their highs before finally bottoming out.”

“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.”

Read more in the full article here.

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%.