While it may seem as if the market has been doing well lately, it really hasn't done anything over the past ten trading days. Since February 3rd (a Friday), the S&P 500 is flat, and the Dow is actually down about 100 points. While Apple -- with its huge weighting in the S&P 500 and Nasdaq -- has really helped buoy the market over this time period, underlying breadth has weakened, and the VIX fear index has shot up 25%. As shown below, 78% of the stocks in the S&P 500 are currently trading above their 50-day moving averages, down from a reading in the mid-80s earlier this month. Apple can't go straight up forever, and if it does pull back or trade sideways for awhile, it will be interesting to see if the rest of the market picks up the slack or completely falls apart.
Subscribe to Bespoke Premium to receive more in-depth research from Bespoke.