It was a solid session for the market, which needed to come out with gusto after fading into the three-day weekend with its tail between its legs. All the equity indices were higher; however, my focus is on the Russell 2000, which rallied more than 2%, nearing a big test of resistance at the trend line. The big test for the index is to close above 1,170, and then at 1,190.
I like this index in part because of the greater domestic exposure.
This could happen if there’s a positive reaction to the Apple announcement, which experts have already written-off as old or unexciting news. On Tuesday, not only did Apple (AAPL) put in a good session, but also the names in its ecosystem did even better: Skyworks Solution (SWKS), Avago Technologies (AVGO), and NXP Semiconductors N.V. (NXPI) acted as if this was a big deal.
After the closing bell, Dave & Buster’s posted strong earnings results, and then offered upside guidance, sending the shares to a new high. It’s important to note that the restaurant space should be huge beneficiaries of cheap gasoline, and I think this is just the beginning.