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Big Drop in Apple Hurts Tech Sector and The Nasdaq Which Are Leading Today's Stock Retreat

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Editor's Note: This article was originally published in John Murphy's Market Message on Friday, November 2nd at 12:28pm ET.


It's usually not a good sign when the market's biggest stock takes a big hit. That's especially true when it happens the day after the company reported its fourth consecutive quarter of record revenue and profits. But that's today's biggest story. Chart 1 shows Apple (AAPL) plunging -7% and falling to the lowest level in nearly three months (after failing a test of its 50-day average). Over the past month, we've seen a succession of big tech stocks fall on strong earnings, which is never a good sign. Apple is the last and the biggest of the so-called FAANG stocks to fall. That's weighing especially hard on the technology sector and the Nasdaq market. And it's happening just as they're meeting resistance at their 200-day moving averages.

Chart 1

John Murphy
About the author: is the Chief Technical Analyst at StockCharts.com, an renowned author in the investment field and a former technical analyst for CNBC. With over 40 years of market experience, he is the author of numerous popular works including Technical Analysis of the Financial Markets and Trading with Intermarket Analysis. John's timely market commentary and expert analysis is available exclusively for StockCharts Members through his Market Message blog. Learn More
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