March 30, 2017 / 1:32 PM / 6 months ago

BUZZ-Market's tail may follow its titans

** As the S&P 500 now chops in a range, important to study action in its top 5 stocks by market cap for potential clues as to the next major move

** Apple, Alphabet, Microsoft, Amazon.com and Facebook are a combined $2.7 trillion in market cap, more than 10 pct of the S&P 500’s total market value

** Indeed, the titans have large impact on market indices; AAPL alone responsible for 22 pct of DJI YTD gain

** And although, Nasdaq advance/decline line most recent peak on Feb 21, and DJI and SPX tops on Mar 1, Nasdaq indices continued to advance, hitting highs on Mar 21

** Mar 21 the high of titan's composite ($2086.87) just shy of resistance line from late 2015. Chart: reut.rs/2njAAwM

** Composite then pulled back, stabilizing at $1999.54 just ahead of support at Oct 2016 high ($1994.81); now back up

** That said, just another 0.5-2.0 pct before composite will reach resistance, and this daily RSI divergence; similar bearish pattern developed into Dec 2015 and Oct 2016 tops

** Another retreat to test rising 200-DMA (now $1888.46) could suggest a drop of perhaps 5-7 pct, depending on its speed; fits with downside risks seen on SPX

** Composite closing above resistance line, however, can suggest breakout; potential for another 3-5 pct beyond line before composite 200-DMA disparity would reach its 2016 high

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