Has Apple Fallen From The Tree?
This morning, the worlds leading technology stock Apple Inc (NASDAQ:AAPL) is trading lower by $12.70 to $391.61 a share. This stock has been a markets leader for years now. The stock just made a new all time high on September 20, 2011 at $422.86 a share. APPL stock is the largest component of the PowererShares QQQ Trust (NASDAQ:QQQ) or better known as the NASDAQ 100. APPL stock accounts for roughly 15.0 percent of the QQQ stock index. Traders can watch for intra-day support on APPL stock around the $391.50, and $388.00 levels.
APPL stock is still trading above the daily chart 20, 50, and 200 moving averages. This tells us that the stock is still in an uptrend and in a strong technical position on the charts. Should the stock break and close below the daily chart 50 moving average that would put the stock in a vulnerable position on the charts. Therefore, the decline this morning can simply be viewed as a pullback or profit taking until the stock breaks further. In any case, it is worth noting that APPL stock is declining on a day when the stock market is trading higher. This tells us that the stock is starting to lose relative strength in the near term. This is not a bullish sign for the leading tech stock in the world.