Nasdaq Composite: Large consolidation in the making

(News Bulletin 247) – When asked whether “Omicron” poses a serious threat to the ongoing global economic recovery, scientists have their approach, politicians have another and … markets have theirs … On Friday, as Wall Street reopened, for a shortened session the day after Thanksgiving, the main equity indices lost ground, without one style of values ​​rather than another doing better. The Nasdaq Composite, the flagship index of technology stocks on the US stock market, lost 2.23% at the close at 2.23%, showing more restraint than the European and Asian indices.

This health announcement is likely to “see the probabilities of a Fed rate hike decrease for May and June, shifting a little more the possibility of seeing such an increase in the short term”, for Vincent Boy (IG France). What to expect now? In the coming weeks, “crucial” for J. Plassard (Mirabaud), it is necessary to follow the advantage taken if necessary by Omicron over Delta, the variation in the incidence rate in the most affected countries, the cases of hospitalization. and death. To the question of a potential questioning of monetary policy, John Plassard answers clearly: “The answer is clearly yes. It is difficult to see how the American central bank could accelerate its tapering and raise its interest rates to 3 times in 2022 (as Goldman Sachs now thinks) if the new Omicron variant were to cause several countries to close their borders and partially shut down their economies. ”

The closing of the borders could nevertheless “further complicate the problems of shortages of components and exert an influence on the prices which are already galloping everywhere”, warns Tangi Le Liboux, analyst at Aurel BGC. “For the markets, it is still too early to determine the impact that the evolution of the health crisis could have over time,” he said.

For the time being, the underlying trend for technical heavyweights is not threatened, even taking into account valuation levels.

To be continued on the statistics side, the current housing sales at 4:00 p.m.

KEY GRAPHIC ELEMENTS

Regarding the substantive technical framework, at this stage 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 a future consolidation.. Wider consolidation is looming. A first bearish acceleration within this consolidation has been expressed.

Positive opinion on the scale of the only session to come.

PREVISION

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

This bullish scenario is valid as long as the Nasdaq Composite Index quotes above the support at 15420.00 points.

DAILY DATA CHART

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