Stock Market Bounce Sings New Tune, AAPL Falls


Simpler Trading Team

2 min read

The stock market was singing a positive tune during the mid-week morning session with all three major indexes recovering from a harsh Tuesday.

Is this morning bounce music to retail traders’ ears, or is an underlying melody the harbinger for more downside losses?

Where this stock market heads may be revealed by a canary disguised as an apple.

Stock market bounce is new tune as Apple falls

The stock market opened higher on Wednesday and carried the bounce through midday trading.

All three major indexes pushed higher near 1% gains or better by the time Wall Street bankers headed to the luncheon bistro for a bite.

It was a welcome environment after the S&P 500 hit six consecutive down days at the close on Tuesday.

Below the flow of positivity during morning trading, savvy traders kept eyes on a “canary in the mine” – Apple, Inc. (AAPL). AAPL was down by 4.5% in early trading and was still struggling, down 3%, heading into the lunch hour.

Early losses in AAPL on the day may have kept some Wall Street players eating take-out at their desks.

This mega-cap technology stock is indexed in the Dow, Nasdaq, and S&P 500 with a valuation that rivals any company in the world. Simpler’s traders have followed Apple as a possible “canary in the mine” revealing market trouble.

Recent news reports have indicated the latest launch of Apple’s marquee smartphone product may not be selling as expected, and the technology sector leader is curtailing production of the device.

Apple stock has been in a steady decline the last 30 days, and is down from $182.01 since Jan. 1. AAPL closed at $151.76 on Tuesday before opening down at $147.64 today. Apple has seen stellar growth over the last two years, growing from a pandemic low of $57.21 in March 2020.

Like other technology stocks, Apple – with extensive overseas operations – is susceptible to high inflation which is holding at a 40-year high.

Simpler’s traders keep following Apple to see if this high-value stock suddenly changes its tune, or stops singing positively altogether.