The Apple chart shows signs of increased selling pressure with a steady decline in On Balance Volume (OBV) the last 2-3 months. OBV peaked in mid April, formed a lower high in late June and moved to new lows in July. With Apple (AAPL) hitting a new high in late June, a large bearish divergence is taking shape in OBV. Also notice the volume on down days is consistently higher than volume on up days.

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Yesterday, the Euro was able to shrug-off Moody’s downgrade of Portugal with the buttress of a well-received Greek debt auction – the positive move was even further resistant to yesterday’s positive run in US equity earnings. As a result, EURUSD climbed quickly and was able to break the 1.2700 threshold. Nevertheless, we are not convinced that this rally has any real legs, as liquidity has been…