The most important stock in the world right now has broken its parabolic uptrend channel after getting rejected at trend line resistance. Huge headwind for the major indexes. $AAPL pic.twitter.com/pgPypp0TU4
— Scott Brown, CMT (@scottcharts) August 22, 2022
Today’s Chart of the Day was shared by Scott Brown (@scottcharts). It’s a daily candlestick chart of the largest stock in the S&P 500 – Apple Inc. ($AAPL). Apple snapped a six-week winning streak last week, as it ran into trendline resistance from the prior peaks. Scott points out that it just broke the rising channel that had been in place since the June lows. To make matters worse, the second largest stock, $MSFT, also broke down today. $AAPL and $MSFT combined represent about 12% of the S&P 500, which is similar to the weight of the bottom four sectors combined (Energy, Materials, Utilities, and Real Estate). It’s going to be much harder for the S&P 500 to score points if its two best players are injured.