The markets opened slightly higher, inching up throughout the morning session towards the 52 week highs.  The SPDR Dow Jones Industrial Average (NYSE:DIA) hit $111.50, just $0.12 off the 52 week high while the SPDR S&P 500 (NYSE:SPY) hit $121.23, just $0.33 off the 52 week high.  The tech laden PowerShares QQQ Trust, Series 1 (NASDAQ:QQQQ) hit the exact 52 week high at $50.19. The markets now sit back down on the flat line, barely able to hold any gains. The top is in on this market.

Why would I make such a statement?  Mainly because of the price action we are seeing today off of earnings from companies like Cree, Inc. (NASDAQ:CREE), Yahoo! Inc. (NASDAQ:YHOO) and of course Apple Inc. (NASDAQ:AAPL).  CREE and YHOO are seeing nice declines after reporting solid earnings but the real significant piece of data comes with AAPL.  AAPL had unbelievable earnings and huge increases in sales of IPODS and IPHONES. However, the market is trading flat to lower.  If Apple cannot prop up the market, what else can?

This seems like the first time in the last year where great news is not able to shoot the markets higher, especially from a company like Apple.  I think this could be significant.  Apple is the leader among leaders.  It is up 5% on the day and the Nasdaq is flat.  The price action speaks for itself in this Chief Market Strategist opinion.  We will watch and find out in the coming weeks.

Gareth Soloway
Chief Market Strategist