Market Commentary

Market Internals

Mixed Market

The market this morning is mixed with the DOW and S&P 500 lower but the NASDAQ higher. A mixed market is not unusual, but the internals showed there were 4.7 declining stocks to every 1 stock that was advancing, and declining volume was 91.4% of the total volume of trades on the NYSE. That is a very bearish reading. So why is the NASDAQ higher?

For several years the indexes and especially the NASDAQ have been, at an increasing pace, driven by the big tech names. Microsoft, Apple, Amazon, and Facebook all sporting nearly or over a trillion-dollar market cap. The NASDAQ is full of smaller companies many tech-related, therefor the weighting of the big tech companies push and pull the entire index(s).

To see what is really going on in the market you are going to have to look deeper than just the indexes.