Interesting comment here from BTIG’s Dan Greenhaus:
…the S&P continues to push higher although it shouldn’t go unnoticed that the Russell 2000 is down in three of the last four sessions, the transports are down in six of the last nine sessions and a large amount of recent gains in broad markets can be explained simply and solely by strength in AAPL.
You can really see the divergence here, comparing the NASDAQ 100 index (just the biggest NASDAQ stocks, to heavily Apple-dominated) to the Russell 2000 (small caps) over the past week.
And here’s a chart of the aforementioned Dow Transports. No, that’s hardly a big selloff, but it doesn’t fit with the broader market, that’s been edging higher and higher.
It’s certainly possible that all this is an over-aggressive attempt to find something in this market, which really isn’t moving very much.
A bullish counterpoint might be to point to the strength in the homebuilders, junior gold miners, and financial stocks, which you wouldn’t expect to see if there was some nervousness behind the scenes.