Apple Inc (NASDAQ:AAPL) investors are bracing for a significant shake-up as the quarterly rebalancing of market index funds coincides with a rare triple witching event, a financial phenomenon that only intensifies market volatility.
Busiest Rebalancing In Four Years To Boost Apple
With $250 billion in stock adjustments underway, the iPhone manufacturer could emerge as one of the biggest beneficiaries.
A notable shift comes from Berkshire Hathaway (NYSE:BRK) (NYSE:BRK) trimming its stake, increasing the share count used by index providers to determine Apple's weight, pushing the Cupertino, California-based company's stock to the top of S&P 500 tracking funds.
Apple To Take The Lead Over Microsoft
Apple's market capitalization of $3.48 trillion now surpasses Microsoft Corp's (NASDAQ:MSFT) $3.26 trillion, positioning the tech titan to be the largest holding in the SPDR S&P 500 ETF (NYSE:SPY).
As funds rebalance, a hefty $35 billion worth of Apple shares will need to be bought, which could provide significant support to its stock price. This reshuffling may further amplify the bullish momentum Apple has enjoyed year-to-date, with the stock already up over 24%.
Read Also: Apple Revenue Growth 'Just Too Slow For Investors To Get Excited About': Analyst Highlights Advertising As Future Catalyst
Bullish Signals All-Around
Apple's stock chart is radiating strength, signaling continued bullish action.
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 sits comfortably above its eight-day SMA of $221.71 and 20-day SMA of $223.84, offering a consistent bullish signal across multiple indicators.
Chart created using Benzinga Pro
The Moving Average Convergence Divergence (MACD) suggests more buying pressure with a positive reading, while the Relative Strength Index (RSI) of 63.00 (and rising) indicates that although Apple is nearing overbought territory, the bullish momentum remains intact.
With the rebalancing aligning with positive technicals, investors are betting that Apple could soar further.
- How Apple Stock Could Gain From Friday's S&P 500 Rebalancing: What Investors Should Know