Technical analysts say Apple’s stock chart could show signs of near-term fatigue, and that could have consequences for the entire stock market. The $2.7 trillion market cap stock is 7.4% of the S&P 500, so when it moves, it could help push the benchmark index higher. It can also act as a drag on the downside. The largest US stock is also a member of the Dow Jones Industrial Average and the Nasdaq Composite. “It outperformed the market during the spring correction, and then it outperformed the market from the June lows,” said BTIG chief technician Jonathan Krinsky. “It’s basically both offensive and defensive, which tells me at the moment it’s crowded. And it’s very long. Krinsky said the stock could pull back to the moving averages. for 50 days, about $152 per share. 50 days is the average of the last 50 closes. A move below it would be considered a sign of negative momentum. Krinsky said: think Apple is vulnerable, so by definition that makes the metrics a bit vulnerable. That’s a big part of that.” Apple traded on both sides on Tuesday, after three days of declines.Shares closed at a near-term high of $174.55 per share on the day. Aug. 17. It traded around $168 on Tuesday, up slightly on the day.Apple overtook the S&P 500 in 2022 and gained 3.3% in August, compared with a barely-percent performance. Since June 30, Apple has gained 22.6%, compared with a 9.3% gain for the S&P 500. “I think today is just a trendless day because it continues after two such weak days. The drop is giving way to a pause,” said Fairlead Strategies founder Katie Stockton, noting that there was a fresh sell-force signal in Apple – as well as in the S&P 500. “The gap fell yesterday. confirms a change in dynamics,” she said. “Overbought has been going on for a long time for Apple. I expect the pullback to bring it back to the 200-day moving average, where there is initial support at $160.62.” Stockton said the change in sentiment was broad-based and not limited to Apple. Apparently in the Cboe Volatility Index (VIX), which turned higher, the VIX dropped slightly on Tuesday. Scott Redler, partner at T3Live.com, said Apple has finally shown a signal of weakness. “For the past two weeks, everyone’s been talking about Apple being overbought and taking the lead, but it hasn’t gone down and neither has the S&P,” he said. : “Apple hit $166.50 this morning, which is a very small healthy correction. It’s about 5% higher than Apple’s intraday high on Aug. 17. Meanwhile, the S&P index dropped below and tested support on Tuesday around 4,130. The index reversed some of its decline and was at 4,135 in afternoon trading. it will be interesting to see if we go deeper to a lower level,” Redler added. If so, “Apple could definitely break today’s low in the coming sessions. That’s definitely a barometer.” He said the next level on the S&P to watch after 4,130 is between 4,030 and 4,040. “All traders will be watching to see how it reacts over the next few days to see if the S&P can hit 4,030 to 4,040,” said Redler. BTIG’s Krinsky said one of the signs he’s watching at Apple is outstripping the 50-day moving average it trades. Last week, he said, the number was around 16%, an unusually large spread. “If you look at the past seven years, the only time it hit 16% for a long period of time was in August and September 2020. That saw a shake-up,” he said. small quite quickly compared to the peak. At the time, he noted, it was 27% higher than 50 days. After that point in 2020, he said, the stock fell about 20% from late August to late September, below its then-rising 50-day moving average. That spread is now around 10% after the recent pullback. Krinsky notes that very wide spreads can mean the stock is at an inflection point and every stock reacts differently. He also noted that Apple could see some downward pressure due to the gap in its chart from late July, when Apple reported earnings. “On July 28, the stock was at $167.54. Then the next day the low was $159.50. There’s no trading in the normal trading session between them. Price wants to turn around. and trade where there is no transaction,” he said.