Even though the NASDAQ Composite dipped about 1.3% on Tuesday, the fact is that day after day, week after week, and month after month, this thing is gliding up a silky-smooth highway of exponential moving averages without showing the slightest sign of sweat. Not a single crossover. And barely even an instance of being below the middle moving average, let along being in the same ZIP code as the slowest moving average. It’s looking tired, yes, but the moving averages aren’t suggesting squat yet (although, let’s face it, these are some pretty slow-moving indicators).
I would point out, however, that breadth still stinks out loud. A handful of stocks – notably, the $3 trillion (!) value Apple – is ruling the roost. When earnings seasons kicks in about three weeks from now, these tech companies better have some jaw-dropping earnings to keep these sky-high valuations supported. Otherwise: kablooie.