The slide continued for nearly six months, while the Apple faithful, and the loonies who are perpetually fully invested in Apple, were getting their hearts ripped out and their life savings depleted. According to technical-analysis folklore, the head-and-shoulder pattern afflicting Apple had the potential to push down the stock 175 points. That would put the target for the pattern at 355. Whoa! And there were many Elliotticians that had a wave target of 390. Well, it appears things are changing, as they always do. A capitulatory event has shaken Apple free. Over the weekend, a horrific report came out of the eurozone about a bank-bailout plan employing Draconian tactics that boiled down to the European government's seizure of account-holder funds to pay for the bailout -- a frightful precedent that gave everyone the shivers. As a result, the markets gapped down hard in overnight trading. When the European market opened, there was both confusion and disbelief of what had happened. The powers that be decided to defer a final decision on the controversial bailout plan, and so the markets rallied, right into the U.S. market open, recapturing much of what was lost.
So how did Apple fare? After all, over the past several months, Apple's stock has been bucking the trend of rising markets; until yesterday, when Apple broke free of its wedge and gained nearly 3%! Now that it has broken free, will Apple be able to recapture its former status?