Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
Often one wonders how this market would fare if Apple (AAPL) was not joining the party – today is a good example. The stock has been weak from the get go, and is now down 2% taking the NASDAQ down with it to the tune of -0.5%. That stands in sharp contrast to the DJIA (no Apple inside) which is slightly up. The S&P 500 which was green to start the day has reversed slightly in the red as well, with its 4.4% weighting in the stock. Not sure why small caps are being hit so hard other than ‘risk off’ when Apple turns off I guess.
This is the first break of the even the 10 day moving average in Apple since early March, when it spent the only 2 days below that level during the past 2 months (during that quick swoon in the general indexes). As mentioned yesterday this stock at worst needs time to consolidate (go sideways) a monster move, if not actually retrace some. So for the bull case to continue, other pockets will need to take the lead. And NASDAQ might be the laggard market for that time frame, not the leader.
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