$AAPL – looking for a swing low

Red columns of 4 or more consecutive down days in $AAPL often lead to the swing low (see the chart below)..

The same is true for indexes also, and ETFs and a lot of stocks.  Four is like a magic number in the market, and more than four can be even more magical, since even if the cluster of four or more is not the reversal bottom, it is a marker in the market to watch for divergence, retests…sea changes…

And sometimes it marks the beginning of a crash.  That is to say, if four days down do not turn the trend, it could be as Trader Vic Sperandeo once said if the market doesn’t do what you expect, it will down the opposite twice as much).

In short, good for a bonce right now and maybe more…

(right click on the chart for a larger view)



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