Chart of the Day - Monday, January 29, 2024

🏆 Today’s Chart of the Day was shared by Larry Thompson (@HostileCharts).

• Over half of the NYSE FANG + Index stocks will report earnings this week, including $MSFT, $AAPL, $AMZN, $META, $GOOGL, and $AMD.

• Mega-Caps have been leading again this year, and they could remain leaders for the foreseeable future, given the NYSE FANG+ Index just recently broke out from a three-year base relative to the S&P 500.

• Mega-Cap dominance has caused many to question the health of the current rally. However, Larry points out that there’s nothing wrong with the best players on your team scoring most of the points. While Mega-Caps are outperforming, some of the more beaten-down areas have begun to participate, including Banks, Biotech, and IPO stocks.

The takeaway: The NYSE FANG+ Index recently broke out to record highs versus the S&P 500, indicating that Mega-Caps could remain dominant in the coming weeks. Mega-Cap leadership shouldn’t be feared, especially since other areas have begun to participate recently.