Apple (AAPL) has been making lower highs and lower lows over the past six weeks or so, as noted on the daily chart below. Why is this important? AAPL is one of the most widely held stocks and as such one of the most widely followed companies. Its stock price for the past few years has served as a barometer for the overall equity market. Should AAPL make a lower low again, which I see near $320, it could be a leading indicator for a 'small' consolidation phase in the overall market.
Switching over to the weekly chart now, note how this consolidation phase in AAPL might just be a bullish formation called a 'flag.' If you're interested in how I trade flag patterns you can download the free trading plan preview on the website (WWW.THESTEADYTRADER.COM). The full trading plan with all the setups will be available on the website shortly, for a small fee.