There are now three $1+ Trillion-Dollar mega caps publicly traded in the stock market. They are Alphabet Inc (GOOGL), Apple Inc (AAPL) and Microsoft Corp (MSFT). These three companies make up a total of approximately $4 trillion in market cap and are over 10% of the S&P 500 alone. These stocks are all up huge in the last year, with Apple adding over a 100% gain since early 2019. Investors are running into these stocks as the hype is growing daily. However, there is a major bearish signal that investors should pay close attention to.
The bearish signal is showing up on two of the three trillion dollar mega caps and could signal a major stock market top. On both Microsoft and Alphabet there is a daily topping tail that just formed. Yesterday, Microsoft put in a topping tail and today Alphabet put in a topping tail. For those that are not aware, topping tails signal a major top in a stock or market as institutional selling sell into the smaller investors buying, creating a long tail on the candlestick chart.
Live trades and profits, text and email alerts within seconds of a new trade taken. Get live entry/exit points and daily analysis with Verified Investing Alerts. View VERIFIED Track Records for the last decade as Master Trader Gareth Soloway has made his members millions. Profit for life when you become a member to his exclusive service. Read reviews here!
The reason this is worth taking note of is these mega cap stocks are the leaders in the market. Two of three signaling a sell and making up 10%+ of the S&P is definitely something smart investors should be fully aware of. In addition, these stocks have surged in value and are extremely overbought on both fundamental and technical analysis. Essentially, everyone knows a correction will come, but the timing has been in question…until now.
Based on the recent run in these stocks, a 10-20% correction is likely. This could easily equate to a 10%+ correction in the stock market.