Apple Computer Inc. (AAPL +$1.27 or +2.43% to $53.61) rallied on above average volume to close in the upper half of its range and $0.04 off its session's high on Friday.  Apple has been steadily rallying since it was recently featured on 8/24/2005 in the CANSLIM.net Mid Day Breakouts Report.  In the Wednesday, September 28, 2005 edition of the CANSLIM.net's After Market Report (read here), Apple was pulling back towards its upward trendline.  It was noted in that report that "Apple Computer gapped lower on Wednesday on above average volume to test support at its upward trendline. Leading stocks tend to pull back towards their upward trendlines to consolidate recent gains." This is exactly what transpired today.  Apple's trendline (shown below) is currently acting as near term support and, thus far, this is a relatively normal pull back. However, should the selling continue and if this issue fails to find support at its upward trendline, then the next level of support is its 50 DMA. Any losses's beyond that point would constitute a technical failure and should not be tolerated."

It was encouraging to see Apple quickly repair Wednesday's gap down.  It is important to note that orderly pull backs are healthy to preserve a stocks advance.  A pull back helps the stock consolidate its recent gains and allows it to reassert itself for further gains.