On 8/7 and again on 8/16 I noted that Apple shares had risk of a sudden drop to $100, where an unfilled gap awaited. Earlier this week AAPL closed that gap and then some.

Because AAPL is the leadership name among tech stocks, the 20-point rally in AAPL over the last 4 days has been a key driver of the rebound in the rest of the market.  

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That said, a large unfilled gap around $76 is the presumptive target. For a market to go down, it first needs to go up. The upside target is the low volume node at $120 where AAPL will also meet its 200 ema.

Don’t let the recent uber-bullish action lull you into complacency. Now that there are very few AAPL bears, the stock has risk to the unfilled gap around $76.

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