Monday Morning Market Outlook

The major indices are in the red to begin the new week. The S&P 500 is down 0.25% and is 4 points from its 5-year high. The NASDAQ is not holding up as well with a loss of 0.6%, due to the sell-off in its biggest component Apple ($AAPL).

• Apple ($AAPL) broke below the $500 level this morning for the first time since last February and is now teetering with break some major support. On last check the stock is back to $505/share, however if the stock closes below $500 it will be a technical breakdown and it will force us to reevaluate our bullish stance on the stock. More to come after the close.
• Has the situation in Greece really improved that much? There was a recent story in the WSJ that talks about Greeks that are unable to pay their utility bills and are therefore forced to cut down trees in the countryside and use the wood to heat their homes. I still believe there is a chance the Euro situation could flare up one more time in 2013 before it is completely resolved. The Global X Greece ETF ($GREK) is up 44% in the last 12 months.
• The Biryini Sentiment Reading (a measure of bulls vs. bears) recently hit a new low for bears and the last time three times this has occurred it has led to short-term market sell-offs. Does this suggest the market is a little long in the tooth at today's levels? I would say YES, but only in the short-term as I do believe we will see the market at higher levels in the months ahead. If I am correct you would want to wait a week or two for some healthy weakness to buy into the market. Support on the SPDR S&P 500 ETF ($SPY) is at $143/share, a pullback of approximately 2.5%.