Nasdaq Flashes Rare Bullish Signal After 4 Straight 1% Gains
Updated
Updated · Business Insider · Aug 5
Nasdaq Flashes Rare Bullish Signal After 4 Straight 1% Gains
2 articles · Updated · Business Insider · Aug 5
Summary
Four consecutive sessions of gains above 1% pushed the Nasdaq Composite into a rare technical setup seen only 17 other times since 1971.
Bespoke Investment Group said the pattern has historically preceded above-average performance, with the Nasdaq gaining 29% on average over the following 12 months.
The signal looks stronger because the index remains within 5% of its 52-week high; in past cases with that backdrop, median one-year returns topped 40%.
The move suggests investors may be rotating back into beaten-down tech names after recent profit-taking, with most Magnificent Seven stocks jumping Tuesday.
The Nasdaq 100 also reclaimed its 50-day moving average this week, adding another closely watched sign that the tech rally may be entering a new phase.