This Should Scare You: Markets Show Signal
The S&P 500 is trading at 1980.52 +7.24. While the markets are up slightly, they should be up far more considering the hugely positive news we have seen today. Let's start with yesterday morning. Both JPMorgan Chase & Co. (NYSE:JPM) and Goldman Sachs Group Inc (NYSE:GS) reported stellar earnings. Both stocks saw solid gains on the day and the markets could not muster a rally, closing lower. Today, the market should seemingly be euphoric after amazing earnings from Intel Corporation (NASDAQ:INTC), a buyout offer for a huge premium on Time Warner Inc (NYSE:TWX) and a major collaboration between International Business Machines Corp. (NYSE:IBM) and Apple Inc. (NASDAQ:AAPL). All these stocks mentioned are jumping higher and are large components of the market. However, the markets are slightly higher on the day. This lack of reaction to great news is something that should make every investor sit up and take note. The cracks in the glass are beginning to weaken the fabric of the markets. If the markets can only inch up slightly on great news, what happens when it is only neutral news or even negative news? One thing to also watch is that the S&P 500 has not taken out the highs from July 3rd. This is a major level to follow in the short term.