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
