Tom DeMark: Apple is Set Up for a Rally to $600

Apple (NASDAQ:AAPL) closed at an all-time record high of $702.10 on September 19. On September 21, Market Studies chief executive Tom DeMark announced that he was going bearish on the iPhone maker. Since then, the stock has been on a seemingly unending tumble downward and at close on Tuesday, was 30 percent below those mighty highs. However, at around $485, the bottom was now in for Apple, DeMark told CNBC.

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The convergence of powerful indicators makes a strong case for Apple to pop very soon, according to the market analyst. “This looks like a very strong rally of at least 22 percent,” DeMark said. “We wouldn’t be surprised to see Apple gap up above $494, $495 despite trading lower in the aftermarket [Tuesday], and it will just move forward from there and be strong for the next couple of weeks and reach $600.”

According to DeMark, this was exactly like his call of a December 4 low in the Shanghai index, after which he turned positive.

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“If the market were in decline further from here, we could see another $100, but we don’t see that happening,” he added. “The bottom is in.”

Apple closed 4.15 percent, or $20.17, up at $506.09 on Wednesday after DeMark’s interview.

Don’t Miss: Barry Ritholtz: Apple’s Stock is a Bear Trap.