The Ripple Effect of the Busiest Rebalancing in Four Years
Apple Inc investors are prepping for a seismic shake-up as market index funds undergo their quarterly rebalancing, coinciding with a rare triple witching event that heightens market volatility.
Apple’s Triumph Over Microsoft: A New Tech Titan Leader Emerges
Surpassing Microsoft Corp, Apple now boasts a market capitalization of $3.48 trillion, positioning itself as the prime holding in the SPDR S&P 500 ETF.
The Cupertino-based tech giant is poised to reap the benefits of a whopping $35 billion worth of Apple shares that will be acquired during the rebalancing, potentially offering sturdy backing to its stock price. This reshuffling is expected to further magnify the bullish run Apple has experienced in 2024, with the stock already soaring over 24%.
Signs Pointing Upwards: A Rosy Outlook for Apple
Apple’s stocks are exuding strength, signaling an ongoing bullish trend.
Trading comfortably above key moving averages such as the five, 20, and 50-day marks, the technical setup strongly favors buyers. The current share price of $231.12 is well above the eight-day SMA of $221.71 and the 20-day SMA of $223.84, flashing consistent bullish signals across various indicators.
The Moving Average Convergence Divergence (MACD) indicates increased buying pressure with a positive reading, while the rising Relative Strength Index (RSI) at 63.00 suggests that although Apple is approaching overbought levels, the bullish momentum remains robust.
Aligned with favorable technical indicators, the rebalancing event has investors optimistic about Apple’s potential to soar even higher.