Introduction:
Since the beginning of the year, the QQQ has been steadily gaining ground. However, a correction has been observed since the end of July, leaving investors to ponder the possibility of an upcoming autumn rally. In this blog post, we’ll delve into the analysis based on seasonality and market cycles to better understand the potential trends for the QQQ.
Analyzing Seasonality and Market Cycles:
The course of the QQQ has closely followed the path of seasonality (depicted by the blue line). Notably, the nadir of its seasonal trend falls at the end of September. Simultaneously, the market cycles (also represented by the blue line) of the 41-month cycle and the 720-day cycle hit their respective lows in mid-September.
Anticipating an Autumn Rally:
Taking these analyses into consideration, there is a compelling case to be made for the possibility of a robust autumn rally commencing from September 26th. This projection is based on the alignment of both seasonality and cycles, which are poised to converge upwards.
Conclusion:
As we approach the latter part of September, investors are keeping a keen eye on the QQQ’s performance. The alignment of seasonal trends and market cycles suggests the potential for an exciting autumn rally ahead. However, it’s important to note that market predictions are subject to various factors, and while historical patterns can provide insights, they do not guarantee future outcomes. As always, diversification and staying informed remain crucial in navigating the dynamic landscape of the financial markets.
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