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Another heavy volume distribution day, this time thanks to the Fed minutes. From IBD, "The Fed minutes indicated little change in policymakers' assessments of the U.S. economic outlook, but also contained cautionary language about the so-called "fiscal cliff" facing the U.S. at year's end."
And the market continues to take investors on quite a ride. Last week we saw the NASDAQ gap below key support and then midweek jump back to the upside, finishing the week higher. This week we saw higher highs reversed and now today a heavy volume distribution close back below the 50 MA. What gives?
Apple stole the show today, adding nearly 50 points to close at $609.84 (+9.87%). The market gapped higher and never looked back with the NASDAQ having its best day of the year thus far (+2.3%) and the S&P 500 adding 1.36%.
The NASDAQ price action today completed an island reversal pattern. Island reversals occur when a stock or market index gaps one direction then gaps back the opposite, forming what can only be described as an island. Between this and closing back above its 50 MA, bulls today got a much needed boost. Also worth noting, the S&P 500 is now within 1 point of last week's highs and a stone throw away from 1400. Talk about a roller coaster.
Today was a mixed session. While growth stocks took a hit across the board, dragging the NASDAQ to another close in the red (-0.3%), the financials focused S&P 500 closed higher (+0.4%).
On the earnings front, Baidu (BIDU) is tanking after hours thanks to an earnings miss while Apple (AAPL) is up trading back near $600 thanks to another stellar quarter. The key to success was growing demand for the iPhone overseas. A look at the after-hours session...
Today was another rough day for the market as market leaders such as Apple (AAPL) and Priceline (PCLN) sold off and the NASDAQ had yet another distribution day as it closed once again back below its 50 day moving average.
