Apple's fall could mean trouble for stocks: Trader

Apple has suffered a blow in recent weeks, extending a drop sparked by quarterly earnings and doubts about the company's sales. And according to one trader, Apple's decline could mean trouble for the overall market.

"We can no longer count on Apple to continue driving stock prices higher; that's a huge concern." Todd Gordon of said Thursday on CNBC's "Trading Nation."

Gordon said Apple is threatening to break an uptrend that has been intact for the last two years, as the stock hovers around $115. If Apple continues to push through that level, Gordon said the next level to watch will be $100.

Apple has fallen almost 6 percent in one week, but bounced back slightly on Thursday, trading up 0.3 percent at just above $115.

The tech giant makes up more than 13 percent of the NASDAQ 100 Index (QQQ), which is up about 7 percent year-to-date. According to Gordon's charts Apple's performance used to lead the QQQ, but the company has lost the ability to drive stocks higher over the last two years.

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According to Gordon's chart, the ratio between Apple and the QQQ peaked around June 2012, and has yet to return to that high of about 0.29. The ratio currently sits at about 0.25, Gordon's chart showed.

Gordon said that although other sectors may continue to push stocks higher, Apple's downturn will put pressure on the QQQ, especially if it breaks the $115 support level, he said.

"That could weigh heavily on the NASDAQ but not until we start to break support levels in the NASDAQ do we want to throw the towel in on the overall market," Gordon said.

Out of 51 analysts, 73 percent have a "buy" rating on Apple, with an average price target of about $145.

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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's Closing Bell (M-F, 3PM-5PM ET). In addition, he contributes to CNBC and CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

Follow Michael Santoli on Twitter @michaelsantoli

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