Why the Summer Slump is Setting Up Wall Street's Next Rally

QQQ has posted eight consecutive down closes, a pattern that historically precedes positive returns according to technical analysis from Zacks Investment Research. Bearish sentiment hit extreme levels for the sixth straight week, matching conditions that triggered a multi-week rally in April and flashing a contrarian buy signal.

NVDA reported $96.2 billion in revenue, beating Wall Street expectations, and announced significant capacity expansion plans for Neocloud partners. The results underscore continued strength in AI infrastructure spending despite recent market weakness.

The combination of oversold technicals and strong fundamental data from the semiconductor leader suggests the recent drawdown may be creating entry points. Six weeks of extreme bearish sentiment historically marks capitulation, while NVDA's revenue beat and expansion plans signal that AI investment cycles remain intact.