Third straight post earnings gap higher open for APPL.

Apple filled the 11/2 gap yesterday as the rally off the June 1st lows stretched to 30%. The post Fed sell off yesterday dragged APPL back below the gap leaving behind a rather long tail. Today the stock is pressing up against the gap again. Some consolidation may be needed before this key area is convincingly taken out. The stock has already had quite a run over the last eight weeks.

Apple’s powerful post earnings surge yesterday drove shares through a extremely damaging gap($216.80) left behind last November. On 11/2/18 the stock fell over 6.5% after opening the session with a huge earnings inspired downside gap. Eight weeks later the stock was taking out the 2018 lows after dropping over 35%. AAPL began to rebound on Jan. 3rd after reaching its 40 week moving average and by May 1st(earnings) nearly all of the post 11/2/18 damage was erased.

We expect AAPL to reach new all time highs($233.50) in the coming months. A rest may be needed first. On the downside, a close back below $207.00 would violate this week’s lows sending a clear warning sign that the $217.00 area is still in control.

At time of publication we are long AAPL in some managed accounts.