“Apple is the most valuable and influential stock in global stock markets based on its market capitalization and its trading volume,” James Kostohryz writes for TheStreet.
“$419 is Apple’s recent low and represents a clear technical line in the sand that stretches all the way back to two ascending peaks in late 2011,” Kostohryz writes. “A violation of the $419 level suggests that Apple will may move down to approximately $350 before it finds any substantial support; $400 may provide a first level of psychological support.”
Kostohryz writes, “At this point, AAPL becomes a leading tell for the entire stock market. It is important to understand that mutual funds, ETFs that and index futures managers that need to liquidate positions will first liquidate the largest and most liquid holdings in order to reduce equity exposure. This means, that in a general market decline, AAPL’s stock will tend to be a leading indicator that will act with a high beta to a fast-moving market.”
Read more in the full article here.
MacDailyNews Take: Appel leads, Everyone else follows. As usual.
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