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.”
Chart source: StockCharts.com
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