Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
There was weakness again in the Russell 2000 (-0.9%) as that index gave back a good portion of yesterday’s move, but barely a blip in the senior indexes (S&P 500, NASDAQ). These both closed above the upper Bollinger band for a second day; talk about massive strength. Until the monster that is Apple (AAPL) weakens these indexes simply don’t seem to budge.
Also you have to point out the rotation going on under the surface, each day it seems a group helps Apple hold up the indexes – Monday it was defensive utilities and dividend type stocks raising questions if there was a rotation back into safety around the corner… just in time for the sand blast Tuesday into all things cyclical (with financials ramping late in the day) and today it was more financials and some consumer discretionary. So everyone had their turn this week, at some point – and while some of the strength is very short term, when that group sells off the money goes into a new group – and hence the indexes hold firm. This has been the pattern for the past month or so, not much stays in the sector leadership for a very long time but there is constant rotation from one group to another based on whatever the HFT are interested in that day it seems.
But bigger picture until they can break Apple, the move continues. Volume in the stock today was akin to that massive reversal day a month ago and while there was a tiny reversal midday, it only led to late day buying. It seems they want to get that $600 price, ahead of option expiration Friday. The action in Apple reminds me of 1999 Cisco – but perhaps even stronger. Or my memory has faded. 
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