Chart of the Day - Tuesday, July 10th, 2019

Today’s chart of the day was shared on Twitter by Todd Sohn and Chris Verrone of Strategas Research Partners. It’s a chart of an equally-weighted FANG index (Facebook, Amazon, Netflix, Google). The chart highlights the resurgence of FANG stocks, which is a theme we've been hearing a lot of technicians talking about recently. These are some of the most widely held stocks and have been among the top performers in the current bull market (regardless of where you choose to measure it from). As price approaches all-time highs, Strategas reminds us that this is an "important spot for a good chunk of market cap." In other words, the direction in which this group of mega-cap tech companies resolves will have a large impact on the broader market, particularly the S&P 500 and Nasdaq 100, as these indices are cap-weighted and FANG represents some of their largest components. Bulls should be watching this closely as it would be constructive to see these names resume leadership positions.