Mega cap melt-up intact

A mid-to-late 1990s-style mega cap melt-up remains intact

Secular bull markets reward those stocks with size and scale. The S&P 100 (mega caps) continues to rally relative to the S&P 500 (large caps) within a pattern that resembles the "mega cap melt-up" from the mid-to-late 1990s, which was the final stage of the secular bull market for the S&P 500 that began in 1980. See our Oct 9 Charted Market Insights for more on the Secular Bull Market Roadmap.

Chart 1: S&P 100 (mega caps) relative to the S&P 500 (large caps)

Mega caps break out from 2-decade+ big base vs. the S&P 500 Equal Weight

The mega cap melt-up relative to the average S&P 500 stock has plenty of room to run given the bullish breakout from a 2-decade+ bottoming pattern for the S&P 100 relative to the S&P 500 Equal Weight.

Chart 2: S&P 100 (mega caps) relative to the S&P 500 Equal Weight