(Click On Chart To Enlarge)
1. The long Lead-In began with the Bullish Island Reversal on August 16, 2007, from 111.62. We can see that the rally to Wave 1 was pretty much a straight up affair. I like long-g Lead-Ins like this one. It tips us off to start watching for a Wolfe Wave to form.
2. At the Wave 5 "Fakeout Breakout" there are three little Doji Star Hangmen, hinting at the impending reversal to the downside. This Wave 5 Fakeout was only a poke of the Head above the top of the pattern, but it still was plenty effective.
3. Notice how swift the move down to the target line (#6) was after AAPL closed below the Wolfe Wave pattern. Only two days. It hung about near the target line, forming a Symmetrical Triangle (little pattern in red) bearish continuation pattern, then got smacked to the downside some more.
4. The low of the pattern at Wave 2 (Blue #2) also is a target: 150.63 IN PLAY
5. In addition, we can measure the high and low of the Wolfe Waves, which also is essentially a Bearish Rising Wedge, to derive another target.
Math for the Big Blue Wedge portion of the Wolfe Wave:
High: 202.96 - Low: 150.63 = 52.33 points, subtracted from the trendline break.
The trendline (Blue #2 - Blue #4) broke at 192.53 on January 4, 2008.
192.53 - 52.33 points = a target of 140.20 IN PLAY
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