The Market Mosaic Special Update: "Mag 7" Stocks
Tracking setups in the S&P 500's biggest stocks.
The Dow Jones Industrial Average and Nasdaq 100 are making new all time highs this past week.
With the chart setups in many of the "Magnificent 7" stocks, the S&P 500 might not be far behind.
The Mag 7 are the seven largest stocks by weight in the S&P, and collectively make up nearly 28% of the index. So their sheer weight can have a major influence on the index, and during my chart scans I noticed just about all the Mag 7 are creating breakout setups (at least the type that I track). I did not include a chart of Apple (AAPL) since it did not meet my chart criteria.
So in today’s brief special update, I want to share the charts and levels I’m watching with this important group of stocks.
Daily chart creating a resistance level at $500 since August as it consolidates the prior move higher. Recent MACD reset at zero line now turning higher as $500 gets tested again for a nice breakout setup.
Meta Platforms (META)
META broke out over $325 in early November, but came back to test that level. Bounced off the 65-day EMA, and now breaking out to new highs for this move.
GOOG is creating a symmetrical triangle pattern over past two months. Coiling for a big move, which should be in the direction of the prior trend (a continuation pattern). Watching for a breakout over trendline resistance at around $140.
Watching for the bullish pennant breakout for MSFT. A breakout should resemble the move preceding the pattern, so should target over $400 on a breakout from $375. Would also note MACD resetting at zero after momentum became stretched to the upside.
Pulling the weekly chart for TSLA. Somewhat of a laggard vs. other Mag 7 stocks relative to its prior highs. But the weekly chart is constructive. Trendline resistance breakout last week with the MACD turning higher from zero. Can setup a test of $300.
Price broke out over resistance at $145 that goes back to August 2022. Recently back testing that level as support, which reset the MACD. Resuming the uptrend over the last three session which I think can target resistance around the prior highs.
Thanks for reading this special report! If these breakout setups follow through, then I expect the S&P 500 to join the Dow and Nasdaq 100 at new highs soon.
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Disclaimer: these are not recommendations and just my thoughts and opinions…do your own due diligence! I may hold a position in the securities mentioned in this report.