Summer seasonals to cap bear market rally? [Video]
|The recent string of better-than-feared US economic data has allowed equity markets to price out some of the more severe recession fears. Last week the US ISM manufacturing print beat markets expectations at 52.8. The ISM services print did too printing 56.7 (vs 53.5 expected) and Friday’s headline NFP print was well above expectations at 528K.
However, despite the strong gains from June’s swing low across major indexes, most analysts remain cautious and see this as a ‘bear market rally. So, this is where seasonals can help. Will we see a period of weakness across major indexes between now and October?
Look at the weaker seasonals for the S&P500, DAX, Nasdaq, and FTSE.
Major Trade Risks: If economic data can continue surprising to the upside then there is a risk that the ‘bear market rally’ may turn into a new bull market.
Learn more about HYCM
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.