While Apple (AAPL) has rocketed to new all-time highs during the past several sessions, the price action has not been confirmed by momentum. In addition, price strength has propelled the stock 20% above its 200-day moving average, which juxtaposes the two indicators in the rarified air of "blow-off" territory.

That said, unless AAPL doubles back under 410-409, the near-term vertical assault remains viable and could propel AAPL still higher to test its upper channel boundaries between 418 and 426 in the upcoming hours.

Bottom line: Only a break below 410-409 will trigger warning signals, while a decline that breaks 406 is needed to confirm a near-term peak in AAPL.

 

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.