The markets are slightly higher today after Greece approved tough austerity measures over the weekend. The SPDR S&P 500 ETF (NYSEARCA:SPY) is trading at $135.03, +0.60 (0.45%). As riots in Greece continue, the markets rejoice. For now, the European Union has been saved.
Many argue that Greece should drop out of the Euro or that Greece is too small to matter. This is a nonsensical argument and those making it have no sense whatsoever. It has nothing to do with Greece being large or small. It is more about the precedence that dropping out would send to other troubled Euro countries like Italy, Spain and Portugal. If one domino falls, they all may fall. In any case, the markets are slightly higher as the austerity measures passed and the markets breath a sigh of relief.
There are some key stocks moving today. First, Apple Inc. (NASDAQ:AAPL) hit a high of $503.83. This marks the first time Apple has gone through this psychological even number. The chart is extremely extended and a pull back is likely in the near term now that the $500 level has been achieved.
Technology is mostly higher but for semiconductors. The Merrill Lynch Semiconductors HOLDRS ETF (NYSEARCA:SMH) is trading at $34.04, -0.13 (-0.38%). This is in contrast to the PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ) which is trading at $62.94, +0.47 (+0.75%). When the semi's lag, it is often a sign that a top is near. Watch this divergence closely.
Volume is once again insanely light in the market. The same pattern that has played out over the last six weeks is playing out again. Early sell when volume is decent then once volume dries up, the markets float higher. Today is no difference in that respect.