Apple Gaps Down

Apple (AAPLWealth Strength IndexAAPL is Extremely Up and trending Up) traded extremely flat after a gap down on the Opening yesterday on reports of poor iPhoneX sales. Even though AAPLWealth Strength IndexAAPL is Extremely Up and trending Up is a major component of all the major indices, the damage it did to the market was minor. The DOW was down 8 points but AAPLWealth Strength IndexAAPL is Extremely Up and trending Up’s drop contributed almost 31 points to the dip meaning that without AAPLWealth Strength IndexAAPL is Extremely Up and trending Up the DOW would have been up 23 points.

Apple options saw its most active trading day since December 1st when AAPLWealth Strength IndexAAPL is Extremely Up and trending Up traded as low as $168.50. Yesterday’s low was $169.68. Even though option implied volatility ticked higher yesterday, the option flow does not signal panic in the stock. Sixty percent of all options traded yesterday were call options.

The option market is calculating an expected move in AAPLWealth Strength IndexAAPL is Extremely Up and trending Up of approximately $2 to the end of this week and nearly $4 to the end of next week. Remember that the expected move does not predict stock direction, just the magnitude of the move.

It will be interesting to watch if AAPLWealth Strength IndexAAPL is Extremely Up and trending Up can hold the important technical are of it’s 50 day moving average which is currently $169.04. With the exception of just a few blips, the 50 day moving average has provided incredible support in AAPLWealth Strength IndexAAPL is Extremely Up and trending Up over the last 18 months.