Big, slow-growth, safe: These are a few of the adjectives frequently attached to some or all of the market’s biggest stocks. Lately, you can add outperforming.
The S&P 100, the index of the market’s truly giant stocks such as Apple (AAPL) and Exxon Mobil (XOM), is showing signs of life versus the plain-vanilla S&P 500.
The attached chart from Bank of America Merrill Lynch technicians Stephen Suttmeier and Jue Xiong show how these giant stocks are breaking resistance versus their merely large peers lately, having punched through the 200-day moving average.
“Sustaining the break above the 200-day moving average and relative chart resistance at the October 2013 low and April 2014 peak for the OEX vs. SPX ratio would confirm a bottom for mega caps relative to large caps,” Suttmeier and Xiong write.See also:
“OEX” is the S&P 100. SPX refers to the S&P 500.
For funds, watch iShares S&P 100 ETF (OEF) or Vanguard Megacap ETF (MGC) versus the broad market....MORE
Big Tech Surges Back - Barron's