“Sellers taking bites out of Apple shares may occur more regularly in the near term,” Steven Russolillo reports for The Wall Street Journal.
“Apple’s rare earnings miss late Tuesday caught the market off guard; with the shares suffering one of their biggest drops this year after closing the previous session at an all-time high,” Russolillo reports. “From a technical-analysis standpoint, more declines may be in the offing.”
Russolillo reports, “The next big technical threshold would be the 200-day average, which many feel is a dividing line between bull and bear markets. It’s only been tested twice since early 2009. Apple would need to drop another 12% from current levels before flirting with that level.”
“From a fundamental view, the stock appears fairly inexpensive,” Russolillo reports. “Apple price-to-earnings ratio currently stands at 11.8, according to FactSet. This compares to 14.8 for the Nasdaq 100.”
Read more in the full article here.