Chart of the Day - Monday, December 28th, 2020

Today’s Chart of the Day was shared on Twitter by Grayson Roze (@GraysonRoze). From left to right are, Amazon ($AMZN), Apple ($AAPL), and Microsoft ($MSFT). These three stocks combined represent more than 30% of the Nasdaq and more than 15% of the S&P 500. All three surged off the March low but have spent the past four months consolidating. Consolidations like these typically resolve in the direction of the underlying trend, which in this case is up. We're already starting to see them break out. $AAPL closed at an all-time high today for the first time since September 2nd and the other two closed above resistance. As Grayson points out, it would be wise to keep an eye on these three juggernauts in the near-term, as the broader market (especially the Nasdaq) will likely follow.