The most impressive thing about the market in recent weeks is how fast and strong it comes back from weak action. The sellers just can't generate any downside momentum.
We had a particularly good illustration of this Tuesday after a disappointing earnings report from Alphabet (GOOGL) . The Nasdaq 100 was very soft at the open and then some heavy-duty sell programs hit and it looked like a rout.
Sell stops were triggered and support levels fell, but the selling relented almost as quickly as it started and the indices turned up a few minutes after 11 a.m. ET. It was straight up from there with a nice flourish of buying into the close to wrap up the month.
What looked like a rather ugly technical breakdown at 11 a.m., turned into an OK day although there was plenty of poor action in individual stocks.
This provided an interesting setup going into two big events -- Apple (AAPL) earnings Tuesday night and the Fed interest-rate decision Wednesday.
Apple's results are ahead of expectations on both revenues and earnings per share. While they aren't big beats, they are solid and the company is increasing its dividend and authorizing another $75 billion in buybacks. Apple has a huge stash of cash and it obviously is going to use it to help the stock.
Apple is up about 5% in after-hours trading and since it has such a huge market cap it is boosting the indices as well. The Nasdaq 100 ETF (QQQ) is up about 0.6% and the S&P 500 has added about 0.25%.
There are some other good reports too, but the focus will quickly shift to the Fed. With earnings season starting to wind down and negative seasonality starting to kick in, it will be interesting to see what catalyst will keep the market trending higher.
For now, the market is happy about Apple. But will it have the juice to power this trend even higher?
Have a good evening. I'll see you Wednesday.