The Generals Are Getting Tired
Good morning!
Mega-cap tech remains under pressure, and the world's largest companies are looking vulnerable.
At the same time, money continues to rotate into groups that have been left behind this cycle.
Let's take a closer look.
The top 50 companies in the world ($XLG) have gone nowhere since September of last year.
The starters have been benched, yet the reserves have managed to keep the team in the game so far.
Just last week, the Equal Weight S&P 500 ($RSP) closed at new all-time highs.
Meanwhile, all the major indexes finished the week negative.
The world's largest companies are now threatening to break down from a multi-month top.
On a relative basis, the top 50 are approaching a key level — the former highs from the Great Financial Crisis.
This ratio has produced a messy breakout attempt, with two failures and now another retest underway.
Maybe the third time is the charm, and this is where the largest companies reassert their dominance versus the broader market.
$XLG is facing major inflection points in both absolute and relative terms.
Let's see if it can hold.
The Morning Print is brought to you by The Chart Report.
If you would like to share a chart or just say hi, shoot us an email at info@thechartreport.com.
