Rotten Apple:
With the recent softness in AAPL and strength in NVDA, the fruit has surrendered itself as the world’s largest company by market cap, and it has MSFT breathing down its neck (these 3 stocks are the only ones with market caps beyond $3T). NVDA is now trading into the ugly bearish engulfing candle from 1/7 that cratered more than 7% (trade has been a bit wide and loose, hallmark bearish traits). As we have been doing this week taking a look at the top holding in a major S&P sector ETF, today we analyze AAPL for the XLK. The WEEKLY chart below of AAPL shows how it has fallen precipitously from the tree. The bears will state the market is on fragile ground because of Apple’s softness, but the bulls will correctly declare tech is holding up despite it. Its daily chart shows a bullish hammer candle Monday after nearly touching its 200-day SMA, which should provide a little cushion. It is now quickly 15% off its peak made less than one month ago, and notice on the ratio chart against the XLK it has in 2025 already given up its entire contribution from the election into year-end 2024.