I sold my overnight DIG hold for a point near 119.5 on the little pop higher this morning. Oil inventory numbers have taken this ETF back below it’s 50 dma as I write this. DIG currently trades at 113.5. I think it’s a fakeout shakeout move, and will be looking for long entries on the 15, and 60-minute charts. Target 135. Stop 108-110.

Ok. 125 may be a little extreme for an AAPL share selloff, but I had to catch your attention. Or is it realistic?

Shares of AAPL stock traded down today, even with the hype surrounding the company’s Worldwide Developers Conference, and the rollout of new features for a 3G iPhone.

Now it’s tough shorting a monster stock, but the charts are indicating this run needs a rest.

The monthly AAPL chart found a pivot low near it’s 20 moving average, and has had three strong months higher. Yet, it’s failed to reach a new high there. The uptrend is still intact on this chart, until it forms a lower monthly candlestick. What I don’t like about it, is the angle of the incline. Notice the 45% angle 2004 - 2007. That’s healthy. This 3-month move is straight up, forming a possible V top, which could be a bearish signal.

The daily chart shows a clearer picture. AAPL has changed it’s trend to slightly neutral. A breakdown below that mini-base is bearish, and the two bottoming tails, indicate the bulls’ ability to step up when needed. The last pivot low must hold though, or AAPL could see 160, and the 200dma. The next major pivot low of 145 would need to hold, and finally a consolidation area around 125 would be next.

The stock has had quite a run. They’re innovative and always full of surprises, but I see some red flags that warrant caution if you’re long.