Today's bear gap has IBM dropping to its lowest levels since mid-May, moving sharply away from its June 25 record high of $296.16. The 150-day moving average looks like it will move in as support for today's pullback, however. Year-to-date, the equity is up 16.5%.

IBM shares sank Thursday, as slightly weaker-than-expected software revenue growth is weighing on a second-quarter earnings report that largely topped estimates.

IBM beat Wall Street estimates for second-quarter revenue and profit on Wednesday, but lower-than-expected sales in its mainstay software segment overshadowed a renewal in demand for the mainframe business spurred by AI upgrades.