The Grand Breakout

The mega-cap stocks are poised to break out this week; Tuesday saw a few of them start the run.

Apple (AAPL). Broke the downtrend. The PPO trend line is breaking as well. I like that confirmation.

Here is AAPL weekly. It doesn't get any sweeter than this for a setup. I expect Apple will follow through. Look at the PPO setup on the weekly as well. The weekly full sto is moving above 50 after the stock has consolidated for 9 months. It also moved back above both the 10-week (short trend) and 40-week (long trend) moving averages.

I'll put Tesla (TSLA) next. Not because it's the behemoth Apple is; I want to point out how a change in momentum on the PPO can result in an outsized move. This is the daily and it is just breaking the downtrend in momentum shown by the PPO. The stock has been setting up a base under the $630 level for 6 weeks. The downtrend line is a few days away, So this stock is set up again. It will need to follow through, but it starts with a nice setup. The next chart shows Tesla historically on the weekly when it broke a big downtrend in momentum.

Tesla weekly. There was an 11-month downtrend in Tesla's price in 2019. When it turned up, it also broke a multi-year downtrend in momentum. Tesla's PPO doesn't spend a lot of time under zero, and it looks like it is turning up to bounce right there right now. You'll see the PPO stay in positive territory and come back to zero to reset for the next run. That is playing out on the Apple PPO, the Tesla PPO and the other large-cap tech names. Microsoft (MSFT).

The weekly of Microsoft. I left the weekly showing 5 years. Notice the consistently positive PPO and the nice bounce off zero in the 2018 pullback! The chart is also just putting a new positive signal, with the PPO crossing the signal line. Look closely in the zoom panel.

Facebook (FB).

Facebook weekly.

Amazon (AMZN). A year-long consolidation.

Amazon weekly.

Alphabet (GOOGL). Nice setup!

Alphabet weekly. Alphabet has already had a nice run while the other mega-caps were consolidating. I still like the daily, and the weekly may have more to run, but my preference is buying when the PPO is turning up from a low level, not turning down from a high level. It could stay up here and run for a long time. The other setups look more appealing.

The bottom line for me is that this looks like a grand breakout setting up across the megacap space.