Apple Inc AAPL investors are preparing for a monumental shift as the quarterly rebalancing of market index funds coincides with a rare triple witching event, injecting an extra dose of adrenaline into an already volatile market.
Four-Year High in Rebalancing Spells Upswing for Apple
With a whopping $250 billion in stock adjustments in progress, the iPhone giant stands to gain significantly from this shake-up.
A significant move is seen as Berkshire Hathaway BRK reducing its stake, a maneuver that boosts the share count used by index providers, hence elevating Apple’s weighting and propelling the Cupertino-based company’s stock to the forefront of S&P 500 tracking funds.
Apple Soars Past Microsoft in Market Cap
With a market capitalization of $3.48 trillion, Apple now outshines that of Microsoft Corp MSFT at $3.26 trillion, asserting its dominance and emerging as the largest holding in the SPDR S&P 500 ETF SPY.
Expecting substantial backing, a staggering $35 billion worth of Apple shares will be purchased during the rebalancing, potentially acting as a strong pillar supporting its stock price. This strategic move is anticipated to further amplify Apple’s bullish trajectory seen throughout the year, with the stock already marking an impressive uptick of over 24%.
Read Also: Apple Revenue Growth ‘Just Too Slow For Investors To Get Excited About’: Analyst Highlights Advertising As Future Catalyst
Upbeat Signs Pave the Way for Apple
Apple’s stock performance graph exudes strength, indicating a continuation of positive market dynamics.
Chart created using Benzinga Pro
Trading above crucial moving averages — five, 20, and 50 days — the technical setup strongly favors buyers. With a share price of $231.12 comfortably surpassing its eight-day SMA of $221.71 and 20-day SMA of $223.84, multiple indicators are aligning to signal a bullish trend.
Chart created using Benzinga Pro
The Moving Average Convergence Divergence (MACD) indicates heightened buying pressure with a positive reading, while the rising Relative Strength Index (RSI) at 63.00 implies Apple’s proximity to overbought conditions but maintains the bullish momentum.
Aligning with positive technical indicators, the ongoing rebalancing sets the stage for a potential surge in Apple’s stock value, a prospect investors are eagerly eyeing.
Read Next:
Market News and Data brought to you by Benzinga APIs