Today looked like any other day over the last month. The markets were floating higher on extremely light volume. A major breakout looked inevitable with the SPDR S&P 500 ETF (NYSEARCA:SPY) taking out the former 52 week highs of $142.21 hit on April 2nd, 2012. The early morning blast catapulted the markets to a high of $143.09 by 10:30am ET.
As the markets ripped higher on this mid August day, leading stocks were in charge. Apple Inc. (NASDAQ:AAPL) and JPMorgan Chase & Co. (NYSE:JPM) both jumped higher in dramatic fashion. Apple climbed to new all time highs the euphoria was palpable.
The bulls began to giggle with delight as the bears began to cry and throw in the towel. The media continued to pump the hype to the average investor. Just as bullish sentiment hit a max high, a possible major reversal occurred. It is only possible because the markets have not closed yet, therefore we do not know the final conclusion of the day. However, the reversal that has taken place started with Apple and trickled down to the S&P 500 and all other stocks.
Apple is currently hovering $16.00 off its high of the day and is now negative. In addition, the SPY is now back to the major double top level from April 2012. A close below this level and the market should have a top in place. A close above, and smart technical traders must continue to look for a pivot top.