Apple Inc AAPL investors are on the edge anticipating a seismic shift as quarterly market index fund rebalancing coincides with a rare trifecta event – a recipe for heightened market tumult.
Unprecedented Rebalancing Spurs Apple’s Rise
Amidst $250 billion in stock readjustments, the iPhone behemoth emerges as a primary beneficiary.
An significant change emanates from Berkshire Hathaway BRK paring its ownership, upping the share count used by index compilers to calculate Apple’s weighting, elevating the California-based giant to lead the S&P 500 trackers.
Apple Overtaking Microsoft’s Crown
Apple’s market cap, at $3.48 trillion, now outshines Microsoft Corp‘s MSFT $3.26 trillion, positioning the tech juggernaut to rule as the premier holding in the SPDR S&P 500 ETF SPY.
Whilst funds harmonize, a hefty $35 billion worth of Apple shares will transition hands, possibly fortifying its stock value. This reshuffle could further accentuate the positive upswing Apple has relished this year, with the stock already soaring over 24%.
Positive Signs Abound
Apple’s stock graph exudes vigor, signaling prolonged market positivity.
Chart created using Benzinga Pro
Trading above key moving averages – five, 20, and 50 days – the technical landscape strongly favors buyers. Priced at $231.12, it rests comfortably above its eight-day SMA of $221.71 and 20-day SMA of $223.84, presenting consistent bullish signals across diverse indicators.
Chart created using Benzinga Pro
The Moving Average Convergence Divergence (MACD) hints at heightened buying pressure with a positive reading, while the Relative Strength Index (RSI) of 63.00 (and ascending) suggests that although Apple approaches overbought terrain, the bullish momentum endures.
Aligned with optimistic technicals, investors are wagering on Apple’s potential to soar higher.
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