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Apple NASDAQ:AAPL Selling May Continue

AAPL, for whatever reason has been allowed to become the most over weighted index component in history, the amount of the Wall St indices made up by AAPL stock is ridiculous and may have been left to give investors a false sense of security in terms of the total market, that aside it would appear over the last few weeks institutions are exiting AAPL on the eve of record earnings, why would they do that? Simple, if we are facing a down turn then funds would expect to reduce their index exposure and prepare for cash demands from redemptions. Shayne Heffernan said in a note to traders.

The concern for a severe downturn also brought change in margin requirements to 60% from 30% by COR Clearing.

The tech giant is down more than 20% from its record high of 705 in September and is trading in Bear market territory now.

Apple’s chart is close to forming a ‘Death Cross’- where the stock’s 50-Day Moving Average falls below the 200-Day Moving Average.

Technicians usually see that sign as a signal to sell.

Analysis: Overall Short Intermediate Long
Very Bearish (-0.53) Bearish (-0.46) Very Bearish (-0.64) Very Bearish (-0.50)

Recent CandleStick Analysis Bullish
Date Candle
3 Dec 2012 Homing Pigeon
29 Nov 2012 DOJI

Open Gaps
Dir Date Range
down 5 Dec 2012 572.13 to 569.25
down 4 Dec 2012 585.50 to 581.80

Support and Resistance
Type Value Conf.
resist. 699.82 4
resist. 679.99 2
resist. 672.85 2
resist. 660.59 2
resist. 647.41 6
resist. 634.72 2
resist. 628.10 2
resist. 615.37 6
resist. 580.85 24
supp 526.80 3

Technical Indicators
Ind. Short Inter Long
EMA VBe VBe VBe
MACD VBe VBe VBe
RSI Be
TDD Be
Fibs Be VBe VBe
Highs Be N N
Lows Be N N
Trends N VBe N
Stoch. VBe
VBu=Very Bullish, Bu=Bullish
N=Neutral
Be=Bearish, VBe=Very Bearish