When Apple Inc. AAPL the stock failed to break through the resistance at the $137 level, it became clear that the tech sector was about to sell off.
With 22% of the S&P 500 technology sector, Apple occupies the largest position in the sector. This means that Apple’s moves have a bigger influence on the tech sector than other stocks.
There is a good chance that the sell-off will end if Apple reaches levels around $124.50. Levels that were previously resistance can turn into support, and $124.50 was resistance for Apple in March. Resistance turns to support due to seller’s remorse.
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Many investors who sold at $124.50 regret doing so because the stock is now higher. A number of these remorseful sellers decide to buy back their stock if they can get it for the same price they sold.
As a result, a large number of buy orders moved to $124.50. If there are enough of these buy orders, it will create support. This support, or the abundance of buy orders, could put a floor under the title and stop the sale.
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