Back in April I first wrote, “The Bear Case for Apple,” ticking off a few fundamental reasons to be bearish on the stock (and seriously ticking off the fanboys in the process). The stock price subsequently went into a multi-month trading range. It has since broken out above the range and I recently noticed some technical reasons one might be bearish on the stock at current levels.
Above is the daily chart of Apple's stock price. On Friday the stock completed a DeMark 9-13-9 (combo) sell signal. In addition, RSI, volume and MACD lines are all clearly diverging from today's new high.
On the weekly chart the stock completed a 9-13-9 (combo) sell signal back in early November and has made little progress since.
We also have an active sell signal on a monthly time frame. This combo 13 was put in around the same time as the weekly 9-13-9 signal was completed.
For an explanation of DeMark's sequential and combo indicators this is a decent overview. However, Tom's books are the best source for learning his market timing strategies.
DISCLOSURE: Short Apple