Apple Inc. (AAPL) - Tests Key Level

Apple Inc. (AAPL) has enjoyed a spectacular rally ever since bottoming last August. In the above chart you can see how the 50 day moving average has supported this entire rally.  We've had 3 pullbacks which were all supported by the 50 day moving average. Two of these pullback actually touched the average and then rallied which leads us to where AAPL is trading now.

AAPL is now touching the 50 day moving average. The average is currently at 344.86 and today's low was 344.90. Obviously many traders/investors are watching this average very closely.

One other point I'd like to make is that AAPL is holding up better than the overall market. The S&P, NASDAQ, and Dow are all trading either at or below the low from two weeks ago but AAPL is trading  well above its low from two weeks ago which is a sign of relative strength.

What it really all comes down to is whether or not the stock market will rally from here. If you've read my previous posts about the direction of the stock market, you'll know that I've been leaning towards the bearish side but if the market is able to turn around, AAPL may very well remain a leader.

Today Apple Inc. (AAPL) closed at 346.67 which was down 5.80 or 1.65% from yesterday's close.