“The unfathomable just took place: Apple shares fell sharply on Monday,” Steven Russolillo reports for The Wall Street Journal.

“The stock — which had gone nearly straight up since hitting new all-time highs last month — finished down more than 2% just two days before Apple is expected to unveil a new iPhone,” Russolillo reports. “Considering the stock’s sharp rally throughout the last few weeks, a little profit taking doesn’t come as a total shocker. And before panic ensues, it’s worth pointing out this selloff barely causes a dent in Apple’s yearlong rise, (the stock is still up 64% in 2012).”

Russolillo reports, “But to some chart watchers, there could be some underlying technical factors behind today’s drop that could portend more trouble ahead. From Dow Jones’ technical guru Tomi Kilgore: If it acts like a reversal, you have to assume it is one. Apple (AAPL) opened at $680.45, above Friday’s close of $680.44, then rose to an all-time high of $683.29 before reversing ground. Apple is now down more than 2%, on track to close below Friday’s low of $675.77. If it does, that type of behavior can either be called a ‘bearish engulfing’ or a ‘key reversal day.’ Either way, it warns of short-term pullback. Levels to watch include potential gap support at $648.19-$649.90 and $636.76-$638.81. A key level to keep in mind is the 50-day moving average, which comes in today at $627.19. Shares dropped 2.6% to $662.74.”

Read more in the full article here.