Apple Inc. shares dropped after the iPhone maker was said to tell suppliers that demand for its flagship product has slowed, taking the shine off their recent record high.

Eoin Treacy's view

Apple announced last month that it was having difficulty sourcing sufficient chips to meet demand. Today’s announcement suggests they may be under less pressure going forward as supply and demand come back into balance.

The share has a history of failing to sustain upward breaks and this occasion appears to be another example of that. It will need to continue to hold the region of the 200-day MA if the benefit of the doubt is to continue to be given to the upside.

The semiconductor sector has been a clear outperformer since the 2020 lows. Breadth is narrowing. ASML has now posted a lower high and needs to hold the region of the trend mean if the benefit of the doubt is to be given to the upside.
Interestingly, the early laggards like Samsung Electronics are beginning to demonstrate signs of support building which suggests some rotation within the sector is underway.