The chart below plots the ratio of AAPL vs. GOOG.
As the ratio declines AAPL is under-performing GOOG.
The ratio has recently completed a bearish H&S pattern and has broken below support line (1).
It’s next major areas of support are ~20% lower at the combination of lines (2) and (3).
We believe the ratio can continue moving lower to target that support over the intermediate-term.
Further, as we have noted in multiple prior posts on GOOG, we believe the investment community is in the earlier stages of positively reassessing the company’s longer-term competitiveness vs. AAPL and its increased role in mobile instead of search.