Chart of the Day – Friday, June 28, 2024

over the past 24 years, the next two weeks have been historically strong for the $QQQ including the biggest average week of the year as summer starts! what’s it going to be in 2024? #seasonality pic.twitter.com/PNlzeIJpwn

— David Cox, CMT, CFA (@DavidCoxRJ) June 28, 2024

Today’s Chart of the Day was shared by David Cox. (@DavidCoxRJ).

• The Nasdaq ($QQQ) has been unchanged over the past two weeks. However, David points out that the next two weeks have historically been strong.

• Earlier this week, Jeff Hirsch of The Stock Traders Almanac examined this seasonal tailwind in a note titled “Christmas in July.“

• Jeff noted, “This 12-day run has been up 30 of the past 39 years with an average historical gain of +2.5%. Look for this rally to begin around June 26 and run until about July 12.”

The takeaway: The Nasdaq ($QQQ) has been indecisive for two weeks now, printing back-to-back Doji candles. Given this seasonal tailwind over the next two weeks, $QQQ *should* resolve decisively higher in the coming days. But, if it resolves lower during this bullish period, it will be a red flag.