— J.C. Parets (@allstarcharts) December 15, 2020
Today’s Chart of the Day was shared on Twitter by JC Parets (@allstarcharts). The chart shows the two most important stocks in the market right now – Apple ($AAPL) and Amazon ($AMZN). These two combined represent more than 20% of the Nasdaq and more than 10% of the S&P 500. These Mega-Cap darlings have spent the last three months consolidating in a sideways fashion as they digest their Summer gains. Luckily for the bulls, Small-Caps and other areas of the market have picked up the slack in a major way, allowing the broader market to continue chugging higher. As we know, consolidations like these typically resolve in the direction of the underlying trend, which is higher. If they break lower instead, it would be a big red flag that a potential trend change is underway. After a long Summer of partying, and three months of a euphoria induced coma, will these two sleeping giants finally wake up? Stay tuned!