The FAANG names -- Facebook (FB) , Amazon (AMZN) , Apple (AAPL) , Netflix (NFLX) and Alphabet (GOOGL) -- and Apple in particular, are doing the heavy lifting today, keeping the indices in positive territory.
The indices looked ready for a negative day before the open but went straight up on no news after the opening bell.
Breadth is now positive with about 3700 gainers to 3300 losers which isn't great but it's the big caps, especially Apple, driving the indices.
One interesting data point is that the number of new 12-month highs is 220 compared to 360 new 12-month lows. That is not what you'd expect to see with all the major indices showing decent sized gains but it reflects the rotational action that has become the norm recently. There are quite a few stocks undergoing some corrective action but you would not know it from the indices.
Tomorrow is the big Apple new product event and it will be interesting to see if the bounce today sets up a 'sell the news' situation. The products seem to be well anticipated already, although some of the details such as pricing are not fully known yet.
Overall this continues to be a choppy market but the saving grace is some very strong underlying support. The dip buyers did not hesitate at all when it came to buying the weakness this morning. The biggest problem is that while the indices stay positive, momentum has been limited as leadership keeps rotating.
A market that is truly strong should not see so many new lows forming. The high level of new highs and new lows at the same time is one of the key aspects of the indicator known as the Hindenburg Omen. It indicates a high level of instability and when there is a cluster of such signals it is seen as a bearish sign. That is a bit arcane but this is not the usual bullish uptrend right now. There is no reason to act on that, but it should be noted and kept in mind as we watch the action.