(News Bulletin 247) – While industrial stocks, penalized by the increasingly significant prospect of an entry into recession of the American economy, weighed on the Dow Jones, the Nasdaq Composite, with strong technological “coloration”, pulled out of the game on Tuesday by gaining 1.75% to 11,322 points, at the heart of a bearish bias channel.
Because the work matrix remains problematic. “The combined effect of Russia’s invasion of Ukraine and the resurgence of health risks, particularly in China, have deteriorated the financial market environment and growth prospects while accentuating the inflationary pressures that emerged during the post-covid recovery.” summarizes the AMF in its new risk mapping.
The “futures” on the American indices augur a hesitant opening of Wall Street, pending the publication of the minutes of the last meeting of the Federal Reserve, a document as always scrutinized closely to try to calibrate the efforts of the central bank of the United States in terms of the fight against inflation – without really being able to imagine that the background picture differs from what we have read there so far…
As a reminder, following the last meeting of the Monetary Policy Committee, the Fed Funds were raised by 75 basis points, a scenario which had been (very partially) digested by the market.
To follow as a priority on the statistical agenda this Wednesday, new job offers (JOLTS) at 4:00 p.m., the PMI ISM Services at 4:00 p.m.
KEY GRAPHIC ELEMENTS
The flagship index of technology stocks on the American side is still in a deep bearish phase, tracing a pattern oblique neckline chartist, within a bearish bias corridor. The pattern remains heavily bearish within the channel. The next highly psychological threshold is at 10,000 points.
FORECAST
Considering the key chart factors 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 is trading below the resistance at 12140.00 points.
CHART IN DAILY DATA
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