There is no question that today's price action in GAP makes one think what stock market is paying closer attention to lately. Retail sales came out a bit better this morning. Futures immediately reacted positively, as they shook off the overnight slump. But it all got nullified as soon as cash market opened. Why? Google, Apple, and Priceline decided to take a collective dive. These high-flyers are now controlling ever-increasing share of NDX (they account for almost 30% of the index). If you take these leaders down 2-3%, it hurts the overall index. So, no matter what the economic news of the day is, keep your eyes on GAP.
I heard many traders debate which of the three will reach $1000 per share first. Could they be racing the other way? Let's see which one gets to $500 first. I pick GOOG.
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