Based on the observation that US equity markets tend to perform well heading into Thanksgiving, we decided to take a proper look at the figures. And it turns out, the Wednesday ahead of Thanksgiving tends to average the strongest positive returns of 0.54% with an 80.6% win rate.
The Nasdaq followed its seasonal tendency to rise on Monday, and closed at a 22-month high above 16k. Whilst Tuesday tends to be a down day, it has risen 52.8% of the time which explains the positive median return. But in a nutshell, the Nasdaq tends to rally into Thanksgiving and weaken the following Monday. And with RSI 2 and RSI 14 overbought alongside hype of strong Nvidia earnings, bulls may want to err on the side of caution next week - especially if we see a strong rally on Wednesday.
The Nasdaq followed its seasonal tendency to rise on Monday, and closed at a 22-month high above 16k. Whilst Tuesday tends to be a down day, it has risen 52.8% of the time which explains the positive median return. But in a nutshell, the Nasdaq tends to rally into Thanksgiving and weaken the following Monday. And with RSI 2 and RSI 14 overbought alongside hype of strong Nvidia earnings, bulls may want to err on the side of caution next week - especially if we see a strong rally on Wednesday.
