Study: NASDAQ leading the S&P is a bullish sign

T

Troy Bombardia

The NASDAQ and S&P are both up this year from January – May. However, the NASDAQ has massively outperformed the S&P by more than 6%.

Here are all the historical cases in which the NASDAQ outperformed the S&P by more than 6% from January-May (while both indexes are positive), and what happens next to the S&P for the rest of the year.

This is historically a bullish sign for the stock market for the rest of the year (June-December).
 
There is probably another study somewhere that shows if SPX leads Nasdaq its a bullish sign. Buying begets more buying begets .... until it doesn't. Genius - those study writers.
 
It is a bullish sign. I can't think of a time where relative strength hasn't tipped off the market direction. You could also get more specific, by industry and classify each as risk-on and risk-off. Consumer discretionary being risk-on, obviously. Tech being risk on. Consumer staples being an example of risk-off. You can see how money shifts from one to the other over the course of months/years - not hours or days. For me, the rally is on, and it's doubly on for the NQ.
 
Troy Bombardia said:
The NASDAQ and S&P are both up this year from January – May. However, the NASDAQ has massively outperformed the S&P by more than 6%.

Here are all the historical cases in which the NASDAQ outperformed the S&P by more than 6% from January-May (while both indexes are positive), and what happens next to the S&P for the rest of the year.

This is historically a bullish sign for the stock market for the rest of the year (June-December).
More...
%%
Exactly;
QQQ also.BUT since JUNE-SEPT has been weakest, in QQQ + SPY, more or less. And its still a bull market you know/200dma. NOT a prediction ;see what happens by turn around Tuesday, close. MANY June sell offs started earlier in the month..... :cool::cool:
 
treeman said:
For sure.. it’s not as if it wouldn’t have come with stops ;)
More...
%%
JULY-SEPT tends to be weakest quarter, SPY, QQQ,IWM.....; not a prediction,+ with tax cuts, maybe, maybe not a good uptrend. GE is still going down, as it has much of the past 18 years. I was reading a William O Neil/IBD book he had a chart of GE @ $60 as something not to buy LOL- true:D:cool:
 
You must log in or register to reply here.
Back
Top