Chart of the Day - Wednesday, March 6, 2024

🏆 Today’s Chart of the Day was shared by Frank Cappelleri (@FrankCappelleri)

• Apple Inc. ($AAPL) is rotting away, closing at a four-month low today. It’s fallen for sixconsecutive days, losing nearly -7% during that time. It hasn’t booked a seven-day losing streak since Jan. ’22, but it could tomorrow.

• It’s making new 52-week lows relative to the S&P 500, as shown in the ratio chart above ($AAPL/$SPX). Frank points out that RSI hit an all-time low today, indicating extreme relative weakness.

• The S&P 500 has held up remarkably well despite $AAPL being its second-largest component. It’s +7.3% YTD and barely off its peak, while $AAPL is -12% YTD and -14.6% from its peak.

The takeaway: $AAPL has been extremely weak in absolute and relative terms. While this juggernaut corrects, other areas of the S&P 500 have picked up the slack, including Industrials, Financials, and, of course, $NVDA. Bull markets thrive on rotation, and perhaps we’re seeing that.