http://stockcharts.com/h-sc/ui?s=AAPL&p=D&yr=0&mn=6&dy=0&id=p69617565544&a=256938322

We have often commented on Apple, and have done literally dozens of studies on the stock.  Dozens.  We have so many Apple computers and phones and software we can’t count them all.  And strangely, we have never bought the stock.

But we are certainly sympathetic to the company — and the stock.  We wrote scathing letters on the idiocy of the financial press when it  wrote obituaries for Apple before the second coming of Steve Jobs.  A few letters ago we ventured that we thought the last downgap was an exhaustion gap and the probable end of the downwave.  Wrong.

This downgap, and its volume are startling.  We can only conclude that the funds are dumping their holdings.  And it does not behoove general investors to stand in the way of stampedes.  The long view is not optimistic.

http://stockcharts.com/h-sc/ui?s=AAPL&p=D&yr=5&mn=0&dy=0&id=p81062284233&a=289294116

Broken long term trendlines are ominous portents.  There may be more blood to be shed here.  We would like to own the stock and will be watching for a bottom.

Apple is subject to strong emotions.  Pushing it to overbought and oversold levels not seen in other stocks.  We think it’s oversold now but will wait to see what the chart does — and not try to catch the bottom.