After an impressive rally off its day low at 340.10,  Apple failed to close above ts 50-day moving average for the first time since September 2, 2010.  The stock was up 50 percent from August 24 to its March 4 closing high.  Japan was 5.4 percent of Apple’s revenues last quarter and there are now fears its supply chain may be disrupted due to the Japanese disaster.

Apple is the key stock to watch, in our opinion, and its failure to hold the 50-day makes us believe there is more downside in the global risk markets.   The Nikkei is bouncing as we write, but we doubt it will be sustained, however.   (click here if chart is not observable)