Apple Inc AAPL investors are preparing for a seismic shift as market index funds undergo a notable rebalance, coinciding with a rare triple witching event that only serves to intensify market unpredictability.
Market Reshuffle Surge To Propel Apple
With a whopping $250 billion in stock adjustments on the horizon, the iPhone giant stands to gain significantly from this rearrangement.
An eye-catching development stems from Berkshire Hathaway BRK trimming its holding, leading to an increase in the share count used for Apple’s index weight calculation. Consequently, this shift is propelling the Cupertino-based company’s stock to the forefront of S&P 500 tracking funds.
Apple’s Ascendancy Over Microsoft Underway
By amassing a market capitalization of $3.48 trillion, Apple has now surpassed Microsoft Corp‘s MSFT $3.26 trillion valuation, positioning itself as the largest holding in the SPDR S&P 500 ETF SPY.
As funds undergo rebalancing, a massive $35 billion worth of Apple shares is set to be acquired, potentially offering substantial reinforcement to its stock price. This realignment may further amplify the already robust positive momentum that Apple has experienced throughout the year, with the stock already climbing over 24%.
Read Also: Apple Revenue Growth ‘Just Too Slow For Investors To Get Excited About’: Analyst Highlights Advertising As Future Catalyst
Encouraging Signs Across the Board
Apple’s stock chart exudes strength, signaling a continuation of bullish activity.
Chart created using Benzinga Pro
With the stock trading above key moving averages — five, 20, and 50 days — the technical setup strongly favors buyers. The share price of $231.12 comfortably sits above its eight-day SMA of $221.71 and 20-day SMA of $223.84, presenting a consistent bullish signal across multiple indicators.
Chart created using Benzinga Pro
The Moving Average Convergence Divergence (MACD) advocates for more buying pressure with a positive reading, while the Relative Strength Index (RSI) at 63.00 (and climbing) suggests that although Apple is nearing overbought levels, the bullish momentum remains intact.
Aligned with positive technicals, the ensuing rebalance has investors betting on Apple’s potential to reach even greater heights.
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