The Market Just Aced Its First Huge Test Of The Year

House of CardsShhh… Don’t tell anyone it’s a house of cards.

“Aced It” is how Mike O’Rourke of BTIG titles his note tonight.Note that it was he who said that the key to following today’s action would be to see whether cash from selling Apple would be deployed elsewhere into tech. It was.

We were watching to see if the money coming out of Apple would rotate back into the market. Although not as much money came out of Apple as one might expect, it did rotate right back into the market, especially in Tech. Advancers outpaced decliners in the Nasdaq 100 at a pace of 3 to 1. Although Apple subtracted 10.2 points from the Nasdaq 100, today’s strong breadth fuelled a 5-point gain for the index. Another example of this rotation is the Equal Weighted Nasdaq 100, which gained 0.66% and outperformed all of the major indices with the exception of the S&P 400, which rallied almost 1%. In typical market irony, Apple briefly ticked to new all-time highs after the close following its earnings report.

Click here for a recap of Tuesday’s US action >

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