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Lock And Load: Apple Will Bounce At This Level

|Includes: PowerShares QQQ Trust ETF (QQQ)

Apple Inc. (NASDAQ:AAPL) is falling sharply again today. The once rocket ship stock is dropping quickly to earth. Apple is trading at $534.77, -11.30 (-2.07%). The media and analysts were pumping the stock when it was trading over $600.00 per share. Meanwhile, when Apple was $621.00 a share, I alerted the world to sell it and go short.

As Apple falls, institutions and analysts have asked me to tell them where the next bounce will occur. The chart below explains it beautifully. The level for an Apple bounce will be $520-$525. The stock will bounce 5% off of this level before resuming its downward track below $500.00.

Gareth Soloway