iPhone report sends Apple under key support. Check the table.
Apple (AAPL) the stock is at a daily low but is still down more than 2% following a bearish iPhone report.
The Bloomberg report says iPhone demand isn’t as strong as some investors might have hoped and plans to ramp up production are now off the table.
The stock’s decline creates some interesting market momentum and comes amid a stock and bond rally – one that’s happening without Apple.
Earlier this month, I called Apple one of the “last stocks standing” as the bear market continued to drive stocks lower.
Amid the selloff — including a portion where the S&P 500 has fallen in six consecutive sessions — Apple has held up pretty well.
Trading Apple Stocks
While megacap tech peers like Microsoft (MSFT) and Alphabet (GOOGL) (GOOG) earlier this year were relative strength leaders, these two stocks recently hit new 52-week lows.
It really just left Apple – and to some extent Tesla (TSLA) .
As of yesterday’s close, Apple stock was still at the top 17.5% from its 2022 low, an impressive feat considering the S&P 500 hit new lows yesterday.
On Tuesday, Apple stock rallied towards active resistance via the 21-day moving average. The bulls’ hope for today’s decline would have been for it to find support near $148.
As pictured above, the $148 area marks the two-week low.
If Apple stock can recover and close above this zone, it’s a win for the bulls, although they still have a lot of work to do – meaning Apple stock is still below 150 $, as well as active resistance via the 10-day and 21-day moving averages.
Should Apple stock stay below $148, as well as the 61.8% retracement near $147, that would keep more downside in play.
Specifically, this could put the $143-$144 zone on the table, followed by the 78.6% retracement near $139.
A breakout of all of these levels could bring the low to mid $130 back into play. If that happens, it’s hard to imagine that the S&P 500 or the Nasdaq will hold up very well.