Apple Falls From Mr. Market’s Tree

U.S. index ETFs were mostly flat on Monday as Apple Computer fell hard and dragged major markets down with it.

apple computer, apple, aapl, nasdaq:aapl, spy, qqq, etfsApple Computer (NASDAQ:AAPL) is a major player in U.S. stock indexes and ETFs since it’s the largest company in the world and often plays the roll of “tail wagging the dog.”

Apple (NASDAQ:AAPL) makes up 10% of the Nasdaq Composite, more than Google and Microsoft combined, 4% of the entire S&P 500 (NYSEARCA:SPY) and 20% of PowerShares QQQ, (NYSEARCA:QQQ) the leading Nasdaq tech ETF.

Apple’s problems spring from declining iPhone sales and from technical weakness since the company’s stock recently formed a “death cross” pattern, which is a widely respected “sell” signal.

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