ETF Trends
ETF Trends

Wall Street darling Apple (NasdaqGS: AAPL) has been volatile since reporting blowout quarterly earnings and traders are watching closely to see if the stock can hold at its 50-day moving average, a key technical indicator.

Apple is the largest holding in PowerShares QQQ (NasdaqGM: QQQ), the tech-heavy exchange traded fund that is a favorite among traders. The ETF has rallied since climbing above its own 50-day average last month.

The fund, which tracks the Nasdaq-100 Index, was up 8.4% year to date through April 29, in line with the S&P 500, according to Morningstar.

PowerShares QQQ ended Monday’s session slightly negative as key components Apple and Microsoft (NasdaqGS: MSFT) both lost about 1%. [Apple, Microsoft Tilt Nasdaq ETF Into the Red.]

“Traders will be watching the $345 level [on Apple shares], as yesterday’s bounce was quickly faded with the stock closing at the lows of the session,” said TradersHuddle.com in a report Tuesday. “Apple’s support coincides also with the 50-day moving average, so a breakdown will definitely spark more selling.”

Apple

Chart source: StockCharts.com

The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.