Apple Influence:

Being the largest market cap company in the world brings a lot of eyes to your action. Of course, it is the largest component in both the QQQ and the S&P 500, (although in the Dow it has less of an impact as it is a cap-weighted index) so many will look to the stock for some direction. Like a plethora of other trading instruments, it seems stuck at its downward sloping 50-day SMA here. Monday, ended a 5-session winning streak and it fell less than the Nasdaq which registered a 2% slump. If the name can decisively break above that moving average it may give the cue for the benchmarks to follow suit. Tomorrow could have a “turnaround Tuesday” and although that is very short-sighted if it can make a loud stand and recoup the line powerfully tech could get a jump start. The markets are still guilty until proven innocent here, but give AAPL credit for CLOSING above both of the big gaps lower on 6/9-10 and its bullish island reversal is still intact. And trying to find bulls these days is harder than pulling teeth.

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