Chart of the Day – Tuesday, July 2, 2024

$AAPL $AMZN $MSFT new record highs.$GOOGL $QQQ just below.$NVDA consolidating before what I expect will be the next leg higher and new all-time highs. pic.twitter.com/9IARW67dkT

— Larry Tentarelli, Blue Chip Daily (@bluechipdaily) July 2, 2024

Today’s Chart of the Day was shared by Larry Tentarelli (@bluechipdaily).

• The Nasdaq 100 ($QQQ) closed at a record high for the first time in two weeks today. It began stalling when $NVDA reversed lower on June 20th. $NVDA remains -9.5% off its highs, but the other Mega-Caps have made up for it.

• Larry points out that $AAPL, $AMZN, and $MSFT closed at record highs today, with $GOOGL just pennies away. Together, these four stocks make up 28% of $QQQ.

• Many call this an unhealthy tape due to how narrow leadership has been. While breadth isn’t ideal, it’s hard to be aggressively bearish if the most influential stocks are hitting record highs.

The takeaway: The Nasdaq 100 ($QQQ) broke out of a two-week consolidation today. While $NVDA has corrected, other Mega-Caps have perked up. Many view Mega-Cap dominance as bearish, but leaders are supposed to lead.