Summer is Over for Apple

On this official first day of autumn, Apple is seeing an abrupt end to its summer vacation.

For the most part, AAPL enjoyed a strong rally after July 4th. The Dow component remains a major part of the QQQ ETF, too, and is also a Warren Buffett holding. Incidentally, Mr. Buffett claims he has not plans to sell his shares anytime soon. 

In light of the recent AAPL event and the iPhone 8 launch, there are reports out of Asia of disappointing turnout. There are a few likely reason for this, from a fundamental perspective. 

But we will stay focused and turn to what the market is actually saying. On the AAPL daily chart, below, for example, the event and launch has clearly seen a "sell the news" reaction.

Granted, this may simply be profit-taking after a brilliant rally. AAPL continues to operate above a rising 200-day moving average. And of its suppliers, ADI has been holding up well.

Also note that AAPL almost filled its $150.22 open gap below (light blue line) from August 1st. This may very well be a routine gap-fill, as the stock is clearly oversold short-term. 

Furthermore, bulls can likely claim victory if both the Dow and QQQ finish the week out well today in the face of both Apple weakness and constant North Korea headlines.