Nasdaq Composite: The menu is plentiful … even before Thanksgiving!

(News Bulletin 247) – The breathing of prices – and not the correction – should continue on the Nasdaq Composite index, rich in technological growth stocks, which is losing ground since the confirmation of the “extension” of J. Powell at the head of the Fed. Judged (a little) less accommodating than Lael Brainard, the other contender, Mr. Powell is leaving for 4 years at the head of an institution which will have to play fine with the monetary valve.

“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).”

However, beware of one thing: the weekly candle will be almost definitively drawn from the close on Wednesday, Wall Street closing Thursday for the Thanksgiving holidays, and reopening for a few hours Friday, in the absence of a majority fringe of participants … A close on the low points this Wednesday would come to support a scenario of releases to come to the heart of a very broad consolidation figure.

In the immediate term, the markets will come to terms with a battery of potential high impact indicators in the event of a deviation from the consensus. To be followed on the inflation side, PCE prices (personal consumption expenditures), the Fed’s benchmark measure at 4:00 p.m., the Consumer Confidence Index (U-Mich) in revised data at 4:00 p.m., household spending and income at 4:00 p.m. also, as well as Minutes of the Fed, the traditional report of the Institution’s last monetary policy meeting, at 8:00 p.m.

Immediately, one hour before the opening of the debates on equities, operators have already taken note of a salvo of indicators. Among the most notable in their deviation from consensus are the downward revision of growth for Q3 to + 2.1%, durable goods orders, which completely missed expectations in their broadest calculation base. , and weekly registrations for unemployment benefits, very encouraging on the other hand, below 200,000 new registrations last week.

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 technological 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. Wider consolidation is looming.

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 16212.00 points.

DAILY DATA CHART

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