Four large cap technology stocks make up roughly 10% of the S&P 500 Index (). Those companies/stocks are Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOGL), Facebook (NASDAQ:FB), and Microsoft (MSFT).
Considering there size and weighting, these large cap tech stocks have the ability to influence the future direction of the broader market.
As pointed out in the charts below, Facebook (FB), Microsoft (MSFT), and Alphabet (GOOGL) are breaking out above sideways ranges. These breakouts are also being met with rising momentum as measured by the 14 day relative strength index (RSI).
The best part about each of these charts is that what once was clear resistance is now support. Therefore, price risk has improved for traders. And it’s easier to define that risk…
If these four can continue to perform, this likely bodes well for the broader stock market indices. Additionally, I like to buy strength in fundamentally sound companies.
I believe these large cap tech stocks look interesting at the moment. Tech has been a leader in 2016… and that leadership role could continue for a while longer yet. Thanks for reading.
Twitter: Â @_SeanDavid
The author does not have a position in mentioned securities at the time of publication.  Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
