Apple opened at another all-time this morning then proceeded to trade straight down closing at its low of the day. It’s down another two bucks in after hours at around $660. It looks like a test of $657.25 support is coming.
This hurt the S&P500′s ability to close positive today after two consecutive days of closing at its high of the day. Anytime we see such a large reversal in a stock leader such as Apple it raises a red flag. The price action in Apple and its impact on the overall market needs to monitored very closely.
We also noted last week that Apple tends to trade up into product launches then experiences a pretty decent sell-off. This is reflected in the below chart from TradingView.com. Given the frayed nerves of global macro issues it does look like sellers are jumping the gun on Wednesday’s product announcement.
Apple is not only the largest market cap stock in the market but also, in our opinion, a proxy for risk appetite of the fast money set. Keep it on your radar.
(click here if charts are not observable)