Markets, especially the Nasdaq gave back some decent gains today. The tech heavy index started Wednesday up .75% on the back of AAPLs earnings beat and slowly gave it back to close near lows for the session. It completed the trifecta rejection today, failing to close above the 3600 level for the third consecutive day, after trading above it each day this week. The S&P 500 has never touched the 1700 level yet, but for the last 3 days, has traded with a point or two of the round figure. On a relative strength basis the Nasdaq is falling behind the S&P 500, as it is 1.2% off its most recent high, while the S&P 500 is .8% off its. Of course this is from very elevated levels. The Nasdaq could drop just over 100 handles to its 50 day SMA near 3475, and still have its uptrend intact. The S&P 500’s 50 day SMA lies near 1643, a little less than 3% from where it stands now. The biggest mover of concern today were the homebuilders, which put in a ugly day to say the least (notes on chart below). AAPL put in a good performance, today advancing more than 5% in solid trade after earnings. The markets made very large gains, without AAPL, since last Septembers 700 highs. Would not it be ironic, if the markets started a downtrend today, as AAPL starts a potential new uptrend.
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