Apple as well as all of the FAANGMAN stocks have been the number one reason why the market has held up and I think that is about to change.
In order for the market to continue to push higher in a healthy fashion, we actually need these stocks to pull back and for other sectors that have been weakened by the pandemic to start to rally. Of course more stimulus will push the market higher and in my opinion is absolutely necessary in order to keep people from going homeless or starve considering the rising cases of Covid around the country and new lockdowns being put in place.
With all that said, apple has broken its trend line from the March lows, was overbought on the RSI with divergence, and the MACD is showing a bearish crossover with weakening momentum. It looks like it is going to try to blast back through the 21 EMA and if it is rejected, I expect downside back to the $329 level. Earnings is next week, which actually could nullify this entire theory if their earnings was stronger than expected (and that is very hard to tell right now but it is possible that their earnings report shows positive results).
As always, do your own research and formulate your own theories. I am not a financial advisor and this is not financial advice. Good luck!
In order for the market to continue to push higher in a healthy fashion, we actually need these stocks to pull back and for other sectors that have been weakened by the pandemic to start to rally. Of course more stimulus will push the market higher and in my opinion is absolutely necessary in order to keep people from going homeless or starve considering the rising cases of Covid around the country and new lockdowns being put in place.
With all that said, apple has broken its trend line from the March lows, was overbought on the RSI with divergence, and the MACD is showing a bearish crossover with weakening momentum. It looks like it is going to try to blast back through the 21 EMA and if it is rejected, I expect downside back to the $329 level. Earnings is next week, which actually could nullify this entire theory if their earnings was stronger than expected (and that is very hard to tell right now but it is possible that their earnings report shows positive results).
As always, do your own research and formulate your own theories. I am not a financial advisor and this is not financial advice. Good luck!