Nasdaq Composite: Very generous statistical program tomorrow, before the Thanksgiving break

(News Bulletin 247) – The Nasdaq Composite index, rich in technological growth stocks, lost 1.26% yesterday to 15,854 points. A straw with regard to the initial progress, but a technical fact to underline, in a market which had to compose with the “extension”, for four additional years, of the mandate of J. Powell at the head of the Fed. Proposal by J. Biden, which has yet to be formally validated by the Chambers. He will be “flanked” by Lael Brainard, whose reputation as a dove is well established …

“The appointment of Jerome Powell at the head of the Fed is not a surprise in itself, that of Lael Brainard would have been, however,” observes John Plassard (Mirabaud). “The US government has decided to play for continuity by not taking any risk in the midst of monetary tightening.” New mandate, and new challenges for J. Powell:

“First of all […] federate the members within the FOMC in order to be able to have full powers and avoid that there are dissensions which are more and more obvious.Then Jerome Powell must obviously read the trajectory of inflation and employment in order to not to be behind the curve (behind the curve).”

A solution of continuity, therefore, which should have the advantage of not causing a stir. Inflation, employment, growth will be on the statistical program tomorrow, with Wednesday’s session concentrating the main meetings before the long Thanksgiving truce. As a reminder, Wall Street will be closed on Thursday, and the session will be shorter on Friday. In reality, it is a safe bet that the volumes are starving due to the absence of a very large fringe of operators on Friday.

On Thursday, therefore, the main meetings of the week will be concentrated, which the Fed will not fail to analyze with the greatest care: weekly registrations for unemployment benefits, quarterly GDP and PCE, the preferred measure of inflation. The traditional Minutes of the Institution will also be published. And this before Black Friday, the traditional kickoff for end-of-year shopping in the land of consumerism.

“The Black Friday will come this week in a context where the bottlenecks that have paralyzed the supply chain continue to be absorbed, even as the energy supply decreases “, notes César Perez Ruiz, Head of Investments and CIO at Pictet Wealth Management.

KEY GRAPHIC ELEMENTS

Regarding the substantive technical framework, unchanged:

Since October 28 and the registration of new historic highs after those of September 07, the flagship index of technology stocks of the American stock market has systematically closed on the high points of the session, in strong volumes, which contracted only very little . The buying side, fully mobilized, does not raise any questions.

A court terme:

The entry into a phase of digestion, the structure of which will be instructive for the future, should be considered. We are still in the process of defining the framework, and the amplitude, of future consolidation.

Negative opinion on the scale of the coming session.

PREVISION

In view of the key graphical factors that we have mentioned, our opinion is negative on the Nasdaq Composite index in the short term.

This bearish scenario is valid as long as the Nasdaq Composite Index quotes below resistance at 17000.00 points.

DAILY DATA CHART

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