Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
It’s been a rough week for the NASDAQ as the index has given back a big portion of last Thursday’s gap and go session.
A lot of this is due to an over reliance on Apple – which of course has been a big positive in 2012 as the stock has had a huge run. But going into this afternoon’s iPhone 5 launch the stock has sold off in a material way (relative to it’s normal history). Some other of the “go to” tech stocks have also been hit in concert as we’ve seen the rotation into commodity type stuff this week. Bigger picture one of these years Apple is going to have a serious correction and you can just imagine how impactful that would be on the NASDAQ.
Compare and contrast how well the Russell 2000 has held up compared to the NASDAQ. This is a big change from just about all of 2012 when small caps have lagged. In the long run more breadth is better so seeing the R2K do well is a positive, but tech is the go to sector for ‘risk’ so of course you’d like to see both going well together for the bull camp.
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