Elliott Wave 5.0 "Reboot"

Monday, January 4, 2016

Apple Continues With Its Decline.

Apple has produced a horrible triple top last year, which is going to be very tough to separate between when the bullish side ends and then then where the real bearish side starts.  Expanded flats throw always introduce the wild side to this because if the expanded top was real then I sure would be more confident that Apple's stock will once again retrace this entire bearish decline.

I don't think it will take too long before this impulse heading down gets trashed and becomes worthless.  At the same time that it kills a potential 5 waves down it also makes a stronger case for Apple to once again soar like an Eagle.  The case against this trend remaining true is that my two trend lines pointing south are far too wide and not steep enough. Apple would have to pass my wave 1 by a very wide margin, then this would send Apple well below a major $55 double bottom.

At the $75 price level Apple has a huge gap that would get closed once Apple gets there.  Just because this gap is there does not mean it will get closed on this trip, as it could still take a very long time to do, but eventually gaps will get closed off.