Actually it was a trifecta of signals.
The biggest and baddest of them all, Apple was down a cool 4.19% today. Next up, Russell 2000 Index or IWM down 0.71%, then the NASDAQ Composite in with a nifty -0.61%.
This occurs while the Dow and SPX are basically flat on the day.
Why was Apple down? Tune into the video below to find out what I think. By tomorrow morning you’ll hear such rumors as, “a big hedge fund was liquidating a position”, or “the new phone leaked out”, or “icloud did get hacked after all.” Whatever the reason, the price action will tell us what’s going on. What this action tells us is that lower prices are ahead.
The IWM (Russell 2000 Index) being down is also of significance. We know from past experience that this index tends to lead the market either up or down. It’s comprised of small and medium businesses in America. This is very much representative of leading sentiment indicator. Last time the market turned down, this very index was first to the party.
The likely scenario is that we are beginning to see the signs of another market top. What remains to be seen is what kind of a top will it be?
There are a couple of potentially market moving items this week. The ECB and Bank of Japan monetary policy statements Thursday and our jobs number on Friday. Both these events can cause short term movements in the market. Those short term movements can morph into larger term movements when we have markets at inflection points. Right now I would suggest we are at another inflection point that should show it’s colors within the next week.
More in tonight’s video: