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Apple, due to its size has a solid impact on the Nasdaq 100 index.
The NDX 100 is nearing the top of its 10-year channel and its about 6% away from its 50% Fibonacci retracement level, drawn from the 2000 highs and 2002 lows. The chart below, posted last week, reflects that Apple broke above its 20 and 30 year resistance lines, as well as its 261% Fibonacci extension levels.
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The key breakout level for Apple was $525, which it tested as support last week and now is $20 a share higher. Is Apple big enough and strong enough to push the NDX 100 index above the resistance levels in the above chart? The NDX 100 needs Apple to push higher for it to break these levels!
In my opinion the simple answer is yes AAPL is big enough to push the index above resistance. While Apple is a good company, I don’t like the fact that their market cap weighting is so large and has such a great influence on the indexes. I’m more a fan of equal weighting. I’m sure the powers that be will be pushing it higher because after all, in their eyes, the market is the economy. My apologies for the cynicism. I still struggle at times with letting news influence my thinking, and by extension, my trading. In the end it is what it is and price is what pays.
My continued thanks for your technical analysis.