Why Apple is so important!

As we have written, Apple has continued to underperform and now, as we write this, has broken some very important technical levels. Just remember, when we use the words “technical levels,” we are talking price, not someone’s opinion. In case you did not know, it is price that counts most.

So…

It is not thrilling to lose arguably, the most important stock in the market.  It is that important because it is the most loved stock in history and the most overowned stock in history.

It is important because of its big weighting on many indices.

It is important because it is a megacap tech company. Megacap tech is what has been leading this market.

It is important because it is representative of growth, of beta and of leadership stocks.

It is important because it influences psychology.

Keep in mind, it typically takes a lot to crack such an important name.  But in real time, it is now happening. Not only has Apple moved below the all-important, longer-term 200 day moving average but it has breached it’s last important breakout to the upside at $120. The stock still has the rest of the week to reverse but so far, ain’t happening.