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'Thank God for Apple' and other tech stocks — they're propping up the market

  • Outsized gains in tech are making the market look better than the underlying trends reveal, technical analyst Todd Gordon says.
  • Gordon sees resistance at an S&P 500 level of 2,500 — about 4 percent higher than Monday's record close.

Many S&P industries are performing poorly, but outsized gains in tech stocks are making the market look better than the underlying trends reveal, TradingAnalysis.com founder Todd Gordon told CNBC on Tuesday.

The S&P 500 index and the Nasdaq composite on Monday closed at record highs, while the Dow Jones industrial average broke a four-session losing streak and rose to within less than 1 percent of an all-time high.

"I think we're coming up into our 2,500 target" on the S&P 500, Gordon predicted on "Squawk Box." That's about 4 percent higher than Monday's close. "At 2,500, it's not just psychologically important but I think that's technical resistance," he said.

"If you look outside of tech ... transports are lagging, small caps have been well off. There's just a lot of just down S&P industries," argued Gordon, who has a background in technical analysis. "Energy stocks ... [and] financial stocks are underperforming."

For bulls playing the indexes, he said, "Thank God for Apple, Amazon and Facebook."

Shares of Apple have gained nearly 35 percent in 2017, while Amazon and Facebook have advanced more than 25 percent so far this year. Those three stocks are among the most heavily weighted names in the S&P 500 and the Nasdaq.

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