The markets continue to grind higher on this Tuesday, following the holiday three-day weekend. The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is trading at $152.95, +0.78 (0.51%). This is a new 52 week high and just 3% off the all time highs. While the markets continue to move higher, Apple Inc. (NASDAQ:AAPL) continues to rot. The stock is trading at $457.35, -2.81 (-0.61%).
The action in Apple compared to the markets shows major relative weakness. Investors should understand that if Apple cannot catch a bid when the markets go up, imagine if the markets were flat or lower. In other words, Apple should be expected to head lower in the coming weeks. Your master downside pivot points are $421.00 and $399.00.