Apple Tide Rolling Downhill

The $116 level on Apple was an area I have been observing for a short-term character change to the downside. As you can see on the updated daily chart, below, Apple suffered a "flash crash" variation of its own this morning, with dip-buyers trying to take advantage of the very fast move down. As we head towards the final two hours of trading, I am still looking to see if buyers can defend $116 adequately. Also note the rising wedge pattern (light blue lines) which has defined Apple's grind higher for nearly six weeks. The action today may very well see that wedge breached which, again, would market another short-term character change. While I no longer consider Apple to be a market momentum leader, I do think it is worth observing its action due to its massive weighting in the Nasdaq. Put another way, until the Apple tide starts rolling downhill some more it is probably worth not getting too carried away on the Nasdaq shorts, even if the risk/reward on the long side is poor.