While the major market indices climb, Apple (AAPL) plunges in reaction to continued bad PR about iPhone4 and news this morning from AP (in USA Today) that a Federal Judge has given the OK for a monopoly abuse lawsuit against Apple and AT&T (T). AAPL has declined as much as $10, but the loss has stabilized at $8 for now.

Let's notice that the weakness has been contained above the near-term support line from the May 21 low (231.35), which cuts across the price axis at 245.70. A break of the trendline will argue for a test of critical support at 242.30/00, which if violated has the potential to send AAPL to 210-200 thereafter.

By Mike Paulenoff

Mike Paulenoff is author of MPTrader.com (www.mptrader.com), a real-time diary of his technical analysis and trading alerts on ETFs covering metals, energy, equity indices, currencies, Treasuries, and specific industries and international regions.

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