SPX Tech analysis by Simon Kazinsky on 20:38 June 28, 2016 EST
We have been saying for a while now this Apple is subject to Newtonian forces that bring it down. Precisely, I flipped to a bearish view when shares started to trade below $120.
The Cupertino company market cap is temporarily sustained by the last and strongest line of support, a Moving Average that has shaped price action for years and provided support in several occasions. In addition, the $90 level is now also part of a line that joins previous long term lows and highs as can be seen on the chart.
My view is that the $80 will be reached in due course and a target of $55 is a middle term objective. Descending Moving Averages that have rejected previous hikes give us an opportunity to short with limited risk.