Apple’s latest product launch provided enough encouragement for investors to produce a positive trading session. Its stock rallied 2.2% last night.

However, Apple’s rally off the lows of late August has the look of unfinished business. Trading on an undemanding multiple of around 12.3 times forward earnings, the Apple chart has formed a pennant pattern. Given Apple's size and market leading status, this could have implications for US market indices.

Pennants are seen as continuation patterns where a clear break through the top of the pennant indicates resumption of the uptrend.  If that happens the next test for Apple could be the zone of resistance around its 200 moving average at $121 (green line on the chart below)

Apple CFD Daily Click to enlarge Apple CFD Daily
Click to enlarge