It’s a question on everyone’s mind, what will happen with the Nasdaq? Are we currently in a bear market rally or is there a potential trend reversal on the horizon? Unfortunately, we do not possess a crystal ball that can predict the future, however, by analyzing the cycles of the Nasdaq, we can get an idea of what lies ahead. While it’s important to keep in mind that the market can always take an unexpected turn, the predictive power of market cycles should not be underestimated.
Our analysis shows two cycles, a short-term and a long-term. Both cycles indicate an upward trend until May. Generally speaking, when two cycles are in agreement, it is considered a more significant predictor than if they are moving in opposite directions. After May, the short-term cycle shows a downward trend while the long-term remains bullish. This could potentially lead to more challenging market conditions and an increase in volatility, with profit-taking being a possibility. However, come autumn, both cycles are aligned once again, signaling a potential for another rally.