At 10:31 am EST the NASDAQ is sinking lower, despite Apple’s massive rally following positive earnings. Other techs are notably soft and weakening. This, to me, is a very disconcerting sign for those who may be long growth technology stocks.
Meanwhile, the VIX started below $10 today, which seems to be relatively accurate gauge of market participant complacency. I don’t think enough money managers are hedging risk as the market continues to make all time highs.
I seem to remember a similar feeling of market euphoria where nothing could possibly go wrong back in 2007. I’m not saying that this is a market top, but there’s really no way to tell until later.
Full disclosure: Short NASDAQ 100. May increase short over next 48 hours.