Typically, a warning from Apple (AAPL) that it would miss its revenue target due to a virus outbreak would seem to be a significant market event, marking a major turning point. But Tuesday the market pretty much just shrugged.
Walmart (WMT) also had poor news, as it missed its earnings estimates, but it barely dipped and finished the day with a sizable gain of 1.5%.
While there was some selling to start the day and even a lower low in the morning, the buyers stepped up in the afternoon and had the indexes well off the early lows. Breadth was around 3,000 gainers to 4,400 decliners and there was an impressive number of new 12-month highs of around 640 of which was good news for stock pickers.
The indexes simply refuse to do the logical thing and pull back. That would provide the bears with a little relief and allow underinvested bulls to put more cash to work without chasing. While the market may seem like a great environment for bulls, it actually is quite frustrating for those who are trying to keep pace with benchmark indexes without chasing elevated entry points.
While the indexes stay very sticky to the upside, the S&P 500 is flat for four days now. That sort of churning action is a good way to relieve out-bought technical action, but it doesn't provide the dips that so many bulls would love to buy.
The anticipatory bears are still hoping and praying but there is no shift in the character of the price action. If the worst that can happen on a revenue guide down is flat action in the Nasdaq, it is hard to think that significant downside is about to occur.
Have a good evening. I'll see you tomorrow.
