Different stocks or sectors lead the market at different times. Sometimes, things can be very confusing. Traders don't know what to watch. The market can offer a variety of seemingly contradictory signals.

But sometimes the market is easy to read. The leadership comes down to just one or two stocks or sectors. And now is one of those times. That's why Apple Inc. (NASDAQ:AAPL) is our Stock of the Day.

There is a good chance that whatever it does, the broader market will follow.

As you can see on the chart, the shares appear to be breaking out. This means they have moved higher and through important resistance.

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Breakouts aren't just symbolic. They illustrate an important dynamic. It shows that the traders and investors who created the resistance with their sell orders are out of the way. They have either finished or canceled their orders.

With this supply taken out of the market, the stage could be set for a move higher. When new buyers come into the market, they will have a hard time finding someone to buy shares from.

As a result, they will need to bid premiums to the prices of the previous trades. This action can force the AAPL into a new uptrend. And being 7% of the S&P 500 Index, this could have a bullish effect on the entire market.

There is a reason why there has been resistance around the $218 level. It was support in late July. Sometimes levels that had been support can convert into resistance due to buyer's remorse.

Many of the traders who bought AAPL while it was at support decided they made a mistake when the shares dropped below their buy price. Some vow to get out. But they will only do so if they can exit their positions without losing any money.

So, when the price rallied and got back to what had been support, these remorseful buyers placed sell orders. These orders can create resistance like they did here.

If Apple can hold above this resistance, it could lead the entire market higher. Like an alpha dog is the leader of a pack, Apple could be the alpha stock that the rest follow.