The macroeconomic headwinds have put tech shares over the brink, with Apple’s shares dropping 17% since 5 May when the Fed triggered a broad equity markets selloff. The Fed meeting’s minutes released this morning did not offer any changes to its stance on the rate hikes trajectory, indicating further 50 basis-points interest rates increase on cards at least in the next two meetings. However, the market participants may hold a different view amid a melting down stock markets and deteriorating economic outlooks.
Apple & S&P 500, Daily (potential bullish break out opportunities at the descending trendline )
Apple and S&P 500 have a positive correlation in the price movements, where both are testing the key resistance at the descending trendlines, thanks to the dominant market cap of the iPhone maker, and the passive investment methodology.
From the above charts, we can tell that the S&P 500 is to test the 4,000-mark, while Apple is on the borderline of the downtrend resistance at 142. If the macro-driven selloff takes a breather, Apple may get a chance to break out toward the upside and head back to the next pivot resistance at 150. On the flip side, if the stock turmoil continues, 132 will become pivot support, then heading to the next medium-term support level at 118.
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