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One of the most important reasons to check market stats is that they cut through the market noise, manipulation, and misconceptions. For instance, most investors would presume that when the Nasdaq Composite is down 9 out of 10 weeks (as it is now), stocks are often in a bear market, and lower prices are on the horizon.
However, the market stats show just the opposite, illustrating how Wall Street is the master manipulator. In fact, since 1978, when the Nasdaq Composite is down 9 out of 10 weeks, similar episodes of selling have seen the NASDAQ higher 3 months and 1 year later every time, with an average gain of 32.5% after 1 year. (Source: The Market Stats, @TheMarketStats)
QQQ: Classic Stop Run & Capitulation
A "stop hunt" or liquidity grab occurs in the stock market when a price movement occurs specifically to trigger a large cluster of stop-loss orders. This type of price spike through an obvious stop-loss zone helps wash out weak hands, setting the stage for a move in the opposite direction.
Friday, the Nasdaq 100 Index ETF saw a classic stop hunt below the 200-day moving average. Friday, QQQ closed below the 200-day moving average for the first time since mid-2025, triggering stop losses. However, on Monday, QQQ is retaking the level with authority, a sign that weak holders are likely shaken out and the index is ready to move higher.
Volume Explodes: Capitulation?
Meanwhile, on Friday, volume turnover in the S&P 500 Index ETF spiked to its highest levels since November's market bottom. Similar volume spikes have proven to be a sign of capitulation and have marked several market bottoms.
AI Earnings Remain Robust
Despite geopolitical tensions and market volatility, earnings from leading companies remain very robust, especially in AI and AI-adjacent stocks. For instance, last week Micron reported record revenue that jumped 196% year-over-year. The company cited booming AI demand for its high-bandwidth memory (HBM) product and issued very strong Q3 revenue guidance.
Meanwhile, other AI-related companies such as NVIDIA, Broadcom and Dell also handily beat Wall Street expectations and raised forward guidance. In other words, the fundamentals beneath the ugly geopolitical headlines remain robust.
Bull Markets Climb the Wall of Worry
According to several sentiment indicators, like the CNN Fear & Greed Indicator, investors are extremely pessimistic. In fact, the CNN Fear & Greed Index is in "Extreme Fear" territory and has just reached its highest fear level since late last year. As the Nasdaq recovers, bulls that were shaken out will need to buy back stocks, and bears will be forced to cover shorts, adding fuel to the fire.
Historical Precedent: Lots of Room Higher
The internet boom of the late 1990s is the closest precedent that investors have to the current AI revolution. After the Netscape IPO in late 1995, the Nasdaq ripped 90%, found trouble 3 years in, then continued its rampage higher, finishing up 402% since the historic moment. Concurrently, the Nasdaq has ripped 90% in the three years since the ChatGPT debut, and recently hit some turbulence. Will history repeat? If the precedent holds true, there is a lot more room for the Nasdaq to move higher.
Valuations are Attractive
Tech stocks remain extremely cheap. Today, the QQQ forward P/E ratio is 21.95x. For context, during the 2000 internet bubble peak, QQQ's forward P/E was north of 100x!
Bullish Seasonality
Stocks tend to gain steam as spring begins. Over the past 20 years, QQQ has been green in April ~75% of the time.
Conclusion
With a recent stop run, continued robust earnings growth, and an attractive valuation, QQQ provides an asymmetric long setup versus Friday's lows. More aggressive investors may trade the ProShares UltraPro 2x QQQ ETF for more leverage.
Free: Instant Access to Zacks' Market-Crushing Strategies
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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Zacks Investment Ideas feature highlights: QQQ, SPY, Micron, NVIDIA, Broadcom, Dell and TQQQ
For Immediate Release
Chicago, IL – March 24, 2026 – Today, Zacks Investment Ideas feature highlights Nasdaq 100 Index ETF (QQQ - Free Report) , S&P 500 Index ETF (SPY - Free Report) , Micron (MU - Free Report) , NVIDIA (NVDA - Free Report) , Broadcom (AVGO - Free Report) , Dell (DELL - Free Report) and ProShares UltraPro 2x QQQ ETF (TQQQ - Free Report) .
QQQ: Bullish Asymmetric Reward-to-Risk Here
Nasdaq Down 9 of 10 Weeks: Bullish?
One of the most important reasons to check market stats is that they cut through the market noise, manipulation, and misconceptions. For instance, most investors would presume that when the Nasdaq Composite is down 9 out of 10 weeks (as it is now), stocks are often in a bear market, and lower prices are on the horizon.
However, the market stats show just the opposite, illustrating how Wall Street is the master manipulator. In fact, since 1978, when the Nasdaq Composite is down 9 out of 10 weeks, similar episodes of selling have seen the NASDAQ higher 3 months and 1 year later every time, with an average gain of 32.5% after 1 year. (Source: The Market Stats, @TheMarketStats)
QQQ: Classic Stop Run & Capitulation
A "stop hunt" or liquidity grab occurs in the stock market when a price movement occurs specifically to trigger a large cluster of stop-loss orders. This type of price spike through an obvious stop-loss zone helps wash out weak hands, setting the stage for a move in the opposite direction.
Friday, the Nasdaq 100 Index ETF saw a classic stop hunt below the 200-day moving average. Friday, QQQ closed below the 200-day moving average for the first time since mid-2025, triggering stop losses. However, on Monday, QQQ is retaking the level with authority, a sign that weak holders are likely shaken out and the index is ready to move higher.
Volume Explodes: Capitulation?
Meanwhile, on Friday, volume turnover in the S&P 500 Index ETF spiked to its highest levels since November's market bottom. Similar volume spikes have proven to be a sign of capitulation and have marked several market bottoms.
AI Earnings Remain Robust
Despite geopolitical tensions and market volatility, earnings from leading companies remain very robust, especially in AI and AI-adjacent stocks. For instance, last week Micron reported record revenue that jumped 196% year-over-year. The company cited booming AI demand for its high-bandwidth memory (HBM) product and issued very strong Q3 revenue guidance.
Meanwhile, other AI-related companies such as NVIDIA, Broadcom and Dell also handily beat Wall Street expectations and raised forward guidance. In other words, the fundamentals beneath the ugly geopolitical headlines remain robust.
Bull Markets Climb the Wall of Worry
According to several sentiment indicators, like the CNN Fear & Greed Indicator, investors are extremely pessimistic. In fact, the CNN Fear & Greed Index is in "Extreme Fear" territory and has just reached its highest fear level since late last year. As the Nasdaq recovers, bulls that were shaken out will need to buy back stocks, and bears will be forced to cover shorts, adding fuel to the fire.
Historical Precedent: Lots of Room Higher
The internet boom of the late 1990s is the closest precedent that investors have to the current AI revolution. After the Netscape IPO in late 1995, the Nasdaq ripped 90%, found trouble 3 years in, then continued its rampage higher, finishing up 402% since the historic moment. Concurrently, the Nasdaq has ripped 90% in the three years since the ChatGPT debut, and recently hit some turbulence. Will history repeat? If the precedent holds true, there is a lot more room for the Nasdaq to move higher.
Valuations are Attractive
Tech stocks remain extremely cheap. Today, the QQQ forward P/E ratio is 21.95x. For context, during the 2000 internet bubble peak, QQQ's forward P/E was north of 100x!
Bullish Seasonality
Stocks tend to gain steam as spring begins. Over the past 20 years, QQQ has been green in April ~75% of the time.
Conclusion
With a recent stop run, continued robust earnings growth, and an attractive valuation, QQQ provides an asymmetric long setup versus Friday's lows. More aggressive investors may trade the ProShares UltraPro 2x QQQ ETF for more leverage.
Free: Instant Access to Zacks' Market-Crushing Strategies
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.
Get all the details here >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.