Cycles Research screens reveal that big-cap tech remains in a leadership role. This status has not changed since last autumn even through corrections. The most important observations about the NASDAQ 100 are drawn from these charts:
- Relative strength has reached new highs, confirming actual price highs
- The weekly momentum shows higher lows
- The monthly price cycle rises throughout the year
- A summer correction does loom from August 29th-October 2nd.
NASDAQ Daily, Weekly, Monthly
NASDAQ Monthly Histogram
(The red bars represent the odds of higher price in that month; the blue bar is the percent price change. The green bar is the expected return. )
NASDAQ Monthly Cycle
Apple has recently gained technical strength. We can see that price has hit a new high on a weekly basis. The monthly cycle dips from here into early July but then rises to yearend. The third and fourth graphs show that Apple is entering its strong seasonal period, July 2-September 2 in which the shares rose 70% of the time, reinforcing the bullish action of the monthly cycle. All cycles point up from early July.
And, I add that most funds are underweight Apple. Thus, there is buying power on the sidelines.
Apple Daily, Weekly, Monthly
Apple Monthly Histogram
Apple Annual Cycle
Apple Monthly Cycle
Read the full article here
