Trader Talk

Stocks weaken into market close on reweighting

Traders work on the floor of the New York Stock Exchange.
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Stocks are weaker going into the final two hours of trading...there is a sell-side imbalance in stock for sale at the close. There is also a quarterly rebalancing of the at the close, with some modest stock for sale with IBM (IBM), Cisco (CSCO), Express Scripts (ESRX), Illinois Tool Works (ITW), and Apple (AAPL), all of which are having their weightings reduced in the S&P 500 due to buybacks.

The Dallas Fed's Richard Fisher was also speaking midday, noting he had no qualms about seeing a little more market volatility.

While there has been some underperformance in Healthcare today due to the weakness in biotechs (see my previous Trader Talk for an explanation) it is not denting the broader market.

Indeed, the S&P 500 hit a historic intraday high right after the open.

And all 10 sectors in the S&P 500 are up this week. Financials have had great run, with the KBW Bank Index (BKX) up 4.7 percent, and Technology is up over 2 percent. Even interest-rate sensitive sector...are up on the week.

Even more remarkable is that the markets side stepped a potential land mine in long as there is no troop movements, the markets have shown little interest, so far.

Bottom line: The most hated rally continues. The S&P 500 is up 1.3 percent for the week to date.

By CNBC's Bob Pisani