Part of the current NASDAQ strength is from Apple clawing its way off its devastating drop, and Ive already seen a lot of chatter about what a fantastic bargain it is at these prices. I recognize that with a P/E of merely 10 it seems like a great steal, but as a chartist, my view is that it's going to get no higher than about $504 (in order to not only fill its gap but also cause a sigh of relief that there's a "5" as the leading digit on the price) before it swoons to new lows for the year.

I'm not doing a thing with it now, but if NFLX manages to fill that gap above $200 – – hooooo boy.

One of the big standouts in today's rally is, of course, International Business Machines. I noticed something remarkable about it, however. From October 16 of last year, there was a gap at 208.56 to be filled. Even though that was more than three months ago, IBM surged today to a high of 208.58 and then retreated. Pretty interesting, yes?

I would quietly point out that Apple's modest strength of late is pushing it right up against its own gap. Apple is a depressed stock, of course, having fallen some 200 points, but I will not drop dead of shock if you see if trading deeply lower after earnings are announced this evening. Unlike certain analysts that really could use a good haircut, I never called for a $1,000/share price target, but instead have stuck to a target of about $440 before it stabilizes.