Rotten Core?
In yesterday’s Tech Note, we spoke of the importance of MSFT stepping up here and giving the software group a bit of wind behind its back. Today we will take a look at the largest company on Earth by market cap AAPL, which never looked comfortable after its well-publicized move above the $3T mark. Last Friday it recorded a doji candle, which is adept at signaling exhaustion, and that also filled in an upside gap from its latest earnings reaction. For it to roll over so quickly after retesting the WEEKLY double bottom breakout we highlighted in our 8/29 Technology Note would be deflating, to say the least. The stock is the largest component in most benchmarks and ETFs. Last week rose more than 6%, its largest WEEKLY gain since the week ending 11/11/22, and this week heading into Thursday has given back more than half of it already in obviously a holiday-shortened week too. The bleeding needs to stop right here or it may put the traditional Q4 run in jeopardy.