TSLA stock and AAPL stock are trading at $273.20 as of 10:39 AM, and $142.74 as of 10:40 AM EDT respectively.
As these companies still hold onto a substantial percentage of their previous gains, Jonathan Krinsky, the chief market technician at BTIG, advised investors to keep an eye on Apple (NASDAQ:AAPL) and Tesla (NASDAQ:TSLA) as indicators that the stock market has bottomed out.
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But according to Krinsky, before the market reaches that level, more drops are probably still required. In the end, he said, “These names breaking is definitely the beginning of what could be a tradable bottom, but we need more proof and possibly lower levels.”
The only two companies among the top eight on the Nasdaq that were still showing gains year over a year heading into recent trade were AAPL and TSLA, both of which fell on Thursday, according to Krinsky. Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Google (GOOG)(GOOGL), and Meta are the other eight names META (NASDAQ:META).
AAPL, TSLA Stock Outlook
Following the 5% decline on Thursday, AAPL’s 12-month performance went marginally negative. Despite a roughly 7% decline on Thursday, TSLA stock is still up about 3% year over year. The chief market technician at BTIG called attention to the fact that TSLA was still up about 350% from its pre-COVID highs as of Thursday. During this time, AAPL had increased by about 78%.
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Krinsky argued that a further decline in the market as a whole could be required to reach a tradable bottom, citing levels below 3,600 on the S&P 500 as a possible target. On Thursday, the index reached an intraday 52-week low of 3,610.40 before closing at 3,640.47.
He said that a break of 3,589 into [Friday] together with a larger VIX curve inversion would be more significant. The levels become trickier below 3,589, but one should keep an eye out for 3,550 (the high from October 20) and then 3,505 (the 50% retracement from the low from March 20 to the high from January 22).
Featured Image- Megapixl @ Grigvovan