After many months of a strong market, but many bearish momentum divergences, the S&P 500 (SPX) finally cracked (a bit) and is currently testing its 50-day average. This is the first time the SPX has touched its 50-day since early November. It is also the first time since the pullback last summer that the 50-day relative strength index (RSI) has fallen below 50, a sign of at least some short-term trouble. A sustained break below the 50-day average would most likely open the door to the 4,800 region -- where the bottom of the bullish channel comes in, as does a 38.2% retracement of the rally since October.

Apple manufactures smartphones, tablets, PCs, software, and peripherals for a worldwide customer base. Its products include Mac desktop and mobile PCs, iPhone, iPad, Apple Watch, and various consumer products, including AirPods, Beats headphones, and Apple TV. Apple services include App Store, iTunes, iCloud, Apple TV+, Apple Arcade, Apple Music, Apple Pay, and more.

U.S. markets were mixed on Friday morning, but are still on track for gains for the week. On the earnings front, FedEx (FDX) rose 7% on an earnings beat, while Nike (NKE) was down about 7% on a weak outlook. The Dow was down 0.5%, the S&P 500 fell 0.1% and the Nasdaq gained less than 0.1%. Crude oil traded above $80 per barrel, while gold fell $16 to $2169 per ounce.

Apple is among the largest companies in the world, with a broad portfolio of hardware and software products targeted at consumers and businesses. Apple’s iPhone makes up a majority of the firm sales, and Apple’s other products like Mac, iPad, and Watch are designed around the iPhone as the focal point of an expansive software ecosystem. Apple has progressively worked to add new applications, like streaming video, subscription bundles, and augmented reality. The firm designs its own software and semiconductors while working with subcontractors like Foxconn and TSMC to build its products and chips. Slightly less than half of Apple’s sales come directly through its flagship stores, with a majority of sales coming indirectly through partnerships and distribution.