As you can see in the graph, however, the company’s shares have gone nowhere since April. For all the sound and fury, AAPL has been in a holding pattern since then, albeit one with the potential to provide a base for a thrust to $300 and beyond. The fact that all of the price action has occurred above the midpoint of the May 6 Flash Crash makes it look convincingly like consolidation. The broad averages have been in a similar state of arrest, although nearly all of the action has taken place below the halfway line of the May 6 Flash Crash. Looks like distribution, we’d say.  So, how is this divergence likely to be resolved? Our guess is that the indexes will eventually pull Apple down rather than the other way around. But it wouldn’t surprise us if this occurs after the Cupertino firm’s shares taken one last, magnificent leap, with the Dow and S&Ps follow (very) meekly along.  But don’t get your hopes up that this break in the tedium will occur before autumn. The market can remain boring for much longer than most investors can remain sane.

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-- Posted Monday, 26 July 2010 | Digg This Article