For a long time, early in 2012 and previously, Apple was leading the market and more specifically the NASDAQ Composite and NASDAQ 100, two indexes that are heavily waited in technology. In fact, the entire market was driven higher through the early part of 2012, all the way through the end of summer, when Apple hit its peak at $705, and then began its slow decline.
Apple may be the ultimate leading indicator of market direction. Looking forward, we may see, after a sizable correction in stocks, that Apple was ahead of the market, telling us to sell. If we should get a correction, we may want to watch Apple for indications of where the market will go next. My expectation is that Apple will continue to decline with the market through the correction, but will then begin to rebound sharply, with the overall market to follow.