Shares of Cupertino, California-base Apple (AAPL: sentiment, chart, options) have come roaring back along with the rest of the technology sector today. At last check, the stock was up nearly 12%, retaking the psychologically important 100 level. Prompting the rally, Sanford Bernstein upgraded AAPL to "outperform" from "market perform." However, the brokerage firm also cut its price target on the shares to $135 from $175 per share. Credit Suisse followed suit on the price-target cut, dropping AAPL to $135 per share from $200 per share. In a note to clients, Sanford Bernstein said that the shares are now "overly discounted," and that the company's short-term financials are likely to remain strong despite an economic slowdown.

However, the technical picture belies the optimism of this morning's upgrade. AAPL may have reclaimed the 100 level, but the shares are still staring up at their declining 20-day moving average and long-term support/resistance at the 110 level. The stock has not closed a session above its 20-day trendline since August 28, and my college Mark Fightmaster recently pointed out that the 110 level is a "point break" for the shares. Specifically, any rally that falls shy of the 110 level could be construed as a weakness in buying pressure, leaving AAPL vulnerable for sellers to move back into the market.

Sentiment is also exceedingly bullish toward the equity, as its Schaeffer's put/call open interest ratio (SOIR) of 0.51 ranks at an annual low - indicating that options traders have not been more optimistic toward AAPL during the past year. Wall Street is also firmly entrenched in the bullish camp, as Zacks.com reports that 14 of the 20 analysts following AAPL rate the shares a "buy" or better. Furthermore, since price-target cuts are en vogue among brokerage firms, the security is in danger of additional cuts. According to Thomson Financial, the current average 12-month price target for AAPL rests at $176.33 per share - an 82% premium to the stock's Friday close.