Apple Tests $220 Support After Four-Day Slide

Apple's stock touched $220.37 in early trading Thursday, a level the shares have not closed below since early May. The four-day losing streak has erased about $120 billion in market value from the March peak.

The $220 zone coincides with the 50-day moving average, which has not been breached on a closing basis since November last year. Options flow shows put volume running at 1.8 times the 20-day average, with the heaviest concentration at the $215 strike – a level that would mark a 10% correction from the all-time high.

One trader at a New York-based hedge fund said the selling has been driven by sector rotation out of megacap tech into energy and financials, not by anything Apple-specific. “The hardware cycle is fine, services growth is still mid-teens, and the buyback is running. This is portfolio rebalancing,” the trader said.

That view finds some support in the data. Apple’s relative strength index dropped to 38 on Wednesday, its most oversold reading since August last year. The last time the RSI hit that level, the stock rallied 8% over the following two weeks.

Still, the macro calendar is heavy. The May jobs report is due Friday morning. A strong print would push the 10-year yield higher, putting further pressure on long-duration equities. A weak print would revive rate-cut bets and could reverse the rotation, several traders said.

Apple reports fiscal third-quarter earnings in late July. Revenue is expected to grow about 3% year-over-year, with iPhone sales flat. The market will watch for commentary on AI features planned for the next iOS update.