Apple Breaks Below 50-Day Moving Average as Support Weakens

Apple shares fell 2.1% on Monday, closing at $224.50 and breaking below the 50-day moving average for the first time in three weeks. Volume was 20% above the 20-day average, confirming the breakdown.

The stock had held the 50-day line since mid-July, using it as a springboard for a 6% rally. That support is now gone. The next level traders are watching is the 200-day moving average at $218, a zone that has capped seven of the last eight sell-offs, according to two traders who track the level.

Apple remains the biggest weighting in the S&P 500, so the move has a broad market read-through. The Nasdaq 100 dropped 1.5% on the same session, with the tech-heavy index failing to hold above its own 50-day line.

No earnings or regulatory news drove the move. The sell-off followed a note from a sell-side firm that trimmed its price target on Apple to $250 from $275, citing softer iPhone demand in China. The firm did not change its buy rating.