Institution: The "super month" in US stocks will come to an end, August may face profit-taking.
Market research company SentimenTrader said that the US stock market is about to end one of the hottest Julys ever. In this month, the S&P 500 index has hit a historical high 10 times, while the Nasdaq Composite index has hit a historical high 14 times. This kind of "super month" is rare in the summer, with historical data showing that after a surge similar to July, August becomes difficult. Historically, when the S&P 500 index hit at least 7 multi-year highs in July, the probability of a rise in August is only 36%, and the probability of a rise in the following two months is less than half. The Nasdaq Composite index has shown more resilience, usually rebounding strongly four months later, but August still becomes like a gamble.
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