More selling is likely in the near term as the markets continue to consolidate. On the flip side, the markets are getting very oversold. So, my recommendation is to be patient when when you have such opposing indicators.

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Apple is also in consolidation mode as the price is converging on it’s uptrend. The uptrend line poses resistance at approximately 187.70, with good support at the 20 day SMA at 180.87 and the 20 day EMA at 179.52. I expect AAPL will test resistance today, let’s see if it has the legs to turn it into support.

It wouldn’t be prudent to take short positions here, because of the oversold indicators. And new longs are not apparent as well, we are in limbo. As pessimism ramps up, we need time to let things settle. Now is the time to sit on the sidelines and wait things out. Capital preservation time.