Mega-cap Technical Breakouts
The S&P 500 Index (SPX) consists of most of the largest companies in the United States. The S&P 500 Index market capitalization is 70-80% of the total U.S. stock market capitalization.
Seven of the largest S&P 500 market-cap stocks by market capitalization account for 23.32% of the overall index. Beating the SPX Index requires large-cap US portfolio manager, hedge fund, and professional/retail investor to focus on the following names – AAPL (5.83% market-cap weight), MSFT (5.58%), AMZN (4.07%), FB (2.35%), GOOGL (2.03%), GOOG (1.99%), and TSLA (1.46%).
Beating the Nasdaq 100 Index (NDX) also depends on the eight largest components (35.11% mkt-cap weight of NDX) such as AAPL (10.85% mkt-cap weight), MSFT (9.76%), AMZN (8.38%), FB (4.11%), TSLA (3.96%), GOOG (3.96%), NVDA (3.65%), and GOOGL (3.55%).
After many months of consolidations and relative underperformances against their larger-cap counterparts, the mega-cap technology stocks are close to or have recently broken out of their respective technical bases. The technical breakouts bode well for SPX, NDX, growth indexes, and other large-cap indexes.
Enclosed below are the charts and the key technical levels for the above names.