Apple Inc (NASDAQ:AAPL) delivered some big earnings results after the close on April 28. On April 29, AAPL traded as high as 137.07 but ultimately closed at 133.48, which was below its close of 133.58 on April 28.
Since that intraday high on April 29, AAPL has fallen 10%. Earlier today, it traded down to 122.83 or just under key support at its 200-day moving average (122.96).
How AAPL responds at this key technical level could be the fulcrum for how other technology/growth stocks/mega-cap stocks fare in the near term. If it fails to hold the above support, it would be a weighty factor for the rest of the aforementioned areas. If buyers hold the line, however, to ensure AAPL doesn’t violate that key support level on a closing basis, then buy-the-dip efforts are likely to broaden out.
In any event, AAPL is at the doorstep of a key technical test that just might result in a pass/fail grade for the broader market.