Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
Someone pointed this out to me so I thought I’d pass it along. Back in April the S&P 500 was hanging in there while there was a lot of damage being done in the Russell 2000. So the main index everyone watches was benign but a lot of stocks under the surface were being damaged. This is reminiscent of what has been happening in October up until this late last week when the S&P 500 (and DJIA) finally began taking some bullets.
However here is the really interesting part. Apple (AAPL) dropped from a peak of $644 to a low of $555 in a few week span going into its earnings back in April; a drop of 13.8%. It then gapped up dramatically on its earning day … and then began to roll over. That led to a very bad May in markets.
Flash forward half a year. Apple dropped from a peak of $705 to a low of $609 in a few week span going into tomorrow’s earnings; a drop of 13.6%. If it gaps up dramatically on earnings Friday … hmm. 
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