The Nasdaq-100 underperformed during the same time, but didn’t roll over. In fact, it snuck to new record highs last week as Apple broke out of a triangle. Amazon.com also broke out, while other megacap technology names like Microsoft and Alphabet squeezed into tight ranges.
And then there’s Facebook , which broke out on May 20.
FB’s catalyst at the time was the launch of its new Shops service catering to small businesses. It then formed a high and tight consolidation pattern above its January highs. Last week it formed a inside candle, and today it’s breaking through the top of that range.
This could be a positive sign for FB and the Nasdaq-100 in general. “FANG” stocks and other large growth names have been the backbone of this market for years. Now that the value bounce in energy and financials is pausing, will back into the established leaders?
By the way, GOOGL is flirting with a trillion dollar market cap just now. FB follows on the list with a valuation around $680 billion. How long before the social media-giant is viewed as the next member of the club?