“The technical test of resistance for Apple happened early Tuesday morning at the $570 level,” Jason Schwarz writes for TheStreet.
“As Apple was trading in complete contradiction to the market over the past five trading sessions, it was obvious that something was happening beneath the surface,” Schwarz writes. “The most likely reason [for the selloff] is that broad-based income tax selling has grown to an all-time high this year.”
Schwarz writes, “How many investors have been forced to sell Apple in the last week in order to pay taxes? As Apple evolves into its own asset class, macro variables such as the April 15 income tax deadline will influence the stock in new ways. Last year, Apple dropped 9.6% from $351 on April 1 to a low of $320 the Monday after the 15th. This year, Apple dropped 12% from $644 on April 10 to $571 on April 17. This is definitely something we should watch out for next year.”
Read more in the full article here.