You could hear the cheer from CNBC commentators as Apple Inc. (NASDAQ:AAPL) reported monster earnings. This truly was a great earnings report. The jubilation started in the media and spread to the little investor. Proclamations of 1380 on the S&P 500 were constant along with "tomorrow" will be a monster up day in the markets.
However, here the S&P 500 sits on the negative side. The SPDR S&P 500 ETF (NYSEARCA:SPY) is trading at $131.28, -0.18 (-0.14%). The NASDAQ is only slightly higher on the day. Most major technology companies are selling off today while Apple is responsible for the gains alone.
One thing to learn is to ignore the Wall Street hype and focus on the charts. By focusing on the charts, it was clear that the markets were overbought and there was little if any upside left. The euphoric state of the media is used to coax the small investor into the markets. As they buy, the institutions sell. This is classic and marks the top of the market in the short term. Remember, when the markets are at their highest point of happiness and the media is pumping the strongest, sell your longs and go short.