“The PowerShares QQQ (QQQ) this afternoon again has dropped below its technically significant 200-day moving average trend line,” Murray Coleman reports for Barron’s. “Likewise, the ETF’s top name, Apple (AAPL), has followed suit.”
“‘The ETF actually touched on its 200-day moving average late yesterday. And Apple’s definitely moved below it today,’ said Jerry Slusiewicz, president of Pacific Financial in Laguna Hills, Calif.,” Coleman reports. “On May 6 of last year, Apple briefly fell below the important technical marker. That was during the ‘flash crash,’ however. It recovered to finish 22% above its 200-day moving average on that day.”
Coleman reports, “Excluding those few seconds, Apple hasn’t been below its 200-day moving average since early April 2009, says Slusiewicz. ‘It recovered quickly and by April 9 (of 2009), it moved above that level and never looked back — until today,’ he added.”
“Apple was most recently trading down 1.9%, or $6.25, at $320.29 a share. About half an hour ago, shares were down to $318.33 — that was the stock’s lowest level since mid-December,” Coleman reports. ‘We’ve got 50 minutes to go, but if we’re still looking at this sort of weakness and there’s no bailout in Greece by Monday, it could get very ugly,’ said Slusiewicz.”
Coleman reports, “However, if a financial package for the struggling country can be formulated in the next few days, he believes that a relief rally might be on the horizon.”
Read more in the full article here.