Market analyst Tom DeMark isn't worried about the big drop in Apple's stock price, and even expected it. He also expects the iPhone and iPad maker's stock will rebound, at it appears it's already on the way back up.
DeMark: Apple's stock isn't tanking
Apple's stock dropped sharply following rumors that iPhone sales are weaker than expected, although some analysts shot down those reports. The market, however, was already worked up into a frenzy and Apple dipped $15.83 to $485.92 on Tuesday.
"On September 21, we turned bearish on Apple, and it was above $700," Mr. DeMark said, according to Business Insider. "We made a prediction that the stock would go down to $494 -- $494.97, to be precise. We've held to that forecast all the way down, despite those intermittent rallies."
"This looks like a very strong rally of at least 22 percent. We wouldn't be surprised tomorrow to see Apple gap up above $494 or $495, despite trading lower in the after-market today, and then just move forward right from there and be strong for the next couple of weeks and reach $600," Mr. DeMark said. "We think the low is in...today or tomorrow."
Just as Mr. DeMark predicted, Apple's stock is climbing back up and is already up over the $500 mark, beating his estimate.
"We saw a freefall decline, and typically what we look for is a rally and then a further decline of an equal amount from the prior decline," he said. "So in the case of Apple, for example, we declined from about $705 down to $505, and then we rallied up to about $595 or so. If you were to take one half of that prior decline and subtract it from that high, you arrive at $494.50."
Apple is currently trading at $501.19, up 15.27 (3.14%).