The Technology Index made another new 52-week high on Monday. This is becoming a habit. Apple carries a huge weighting in that Index, states JC Parets of AllStarCharts.com.
So as some people get distracted with how Apple's $2.75 trillion market cap is now bigger than the entire Russell 2000 Index, I'm more interested in how quickly Apple can get to $5 trillion. I think it can happen pretty soon. Look at these massive moves in market cap that can happen in a relatively short period of time.
$5 trillion can get here sooner than you think. I laid out the roadmap here using our Fibonacci projections. You can see how consistently the market respects these levels. So we do too!
The correction in Apple held support around 132, and so 212 is next. 341 gets Apple to $5 trillion. That's the next Fibonacci extension after that. And to be clear, this post is not so much like, "Oh hey buy Apple stock today because JC thinks it goes to $5 trillion." I mean, you can buy it if you want. Do what's best for you.
My bigger point here is that this is how we want to think. For me, it makes sense to put these market caps into context. And since some of these carry very large weightings in indexes like the S&P 500 (SPX) and Nasdaq 100 (NDX), it makes sense to also consider the impact Apple (and others) can have. Asset prices trend. We know that. And Apple is no different. The most recent consolidation in price over the last 18 months comes after a rally from 2020 to 2021 that took $AAPL from $1 trillion to nearly $3 trillion:
Consolidations historically tend to resolve in the direction of the underlying trend. That's the much higher probability outcome. In the case of $AAPL, the trend has obviously been up. If we can go from one to three trillion in under two years. Then consolidate. Why can't the next move higher take it to five? No reason, as far as I'm concerned. More likely just perfectly normal market behavior.
Did you ever think you'd call a stock's move to $5 trillion, "Perfectly Normal?" Yea, me neither. But we're rolling with it. See you at $5 trillion my friends. YOLO responsibly.
To learn more about JC Parets, please visit AllStarCharts.com.