Chart analyst Katie Stockton says S&P 500 has a 'better opportunity' to go to new highs thanks to megacap leaders
The S & P 500 has a 'better opportunity' to make new highs thanks to megacap leadership, one chart analyst said. Fairlead Strategies' Katie Stockton currently holds a 4510 objective for the benchmark index, remaining positive partly because of the uptrend in megacap tech stocks. She pointed to Apple, which climbed to a new high and closed above $3 trillion in market value on Friday, as a "big deal." "The more breakouts that we see from a bottom up perspective, mega caps or aside, that's a bullish development because it tends to allow breadth to improve further," Stockton told CNBC's "Squawk Box" on Monday. AAPL YTD mountain Apple shares YTD A handful of stocks tied to artificial intelligence significantly lifted the market in the first half of the year, a narrow advance and indicator of poor market breadth that caused concern among some investors that the recent rally isn't sustainable. In June, however, the advance broadened somewhat. "We've seen the cumulative advance-decline line co
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The S & P 500 has a 'better opportunity' to make new highs thanks to megacap leadership, one chart analyst said. Fairlead Strategies' Katie Stockton currently holds a 4510 objective for the benchmark index, remaining positive partly because of the uptrend in megacap tech stocks. She pointed to Apple, which climbed to a new high and closed above $3 trillion in market value on Friday, as a "big deal." "The more breakouts that we see from a bottom up perspective, mega caps or aside, that's a bullish development because it tends to allow breadth to improve further," Stockton told CNBC's "Squawk Box" on Monday. AAPL YTD mountain Apple shares YTD A handful of stocks tied to artificial intelligence significantly lifted the market in the first half of the year, a narrow advance and indicator of poor market breadth that caused concern among some investors that the recent rally isn't sustainable. In June, however, the advance broadened somewhat. "We've seen the cumulative advance-decline line come through some resistance of its own, and that essentially confirms the breakouts that we've seen since mid-May, and should foster a little bit of upside follow through, adding to the longevity of the trend," Stockton added. Stockton said megacap tech stocks still have "great momentum," and that they can still trend higher. At the very least, they can instill confidence in investors. To be sure, the chart analyst still encourages a balanced portfolio that also holds some Treasury and gold exposure in addition to equities.
