Apple Defies 'Death Cross,' Rebounds From Nine-Month Low
Investors breathed new life into Apple on Thursday after sending its shares to its deepest trough in nine months—flirting with levels that chartists regard as a major sell signal.
In the midst of a brutal sell-off that dragged Apple's stock back into bear territory on Wednesday, a combination of bargain hunting and a rally in major stock benchmarks helped Apple shares find buyers. With some analysts warning that the sell off was getting overdone, Apple's stock bounced to a session high above $548.
Apple briefly closed in on a technical area known as the "death cross" – where its 50-day moving average falls below the 200 day moving average. Technicians often take that movement as a cue to hit the sell button.
The rebound also comes as CEO Tim Cook announced that Applewas poised to produce one line of its Mac lines domestically. Itwas a rare bit of good news for a company that has been battered bythe market's doubts about its ability to keep innovating whilebeating its competition. (Read more: One Mac to Be Made in USA: Tim Cook.)