Nasdaq Composite: Channel Upper Bound Test

(News Bulletin 247) – The Nasdaq Composite index (+1.79% to 11,452 points on Friday) is expected to rise at the opening on Monday, oxygen having been found since the end of last week both by rather encouraging indicators on the consumer front, and by the start of a good quarterly ball, especially on the banking side, which explains the outperformance of the Dow Jones.

The market, for the time being at least, seems to be satisfied with a new Fed Funds monetary tightening of 75 bps, instead of the brutal option of 100 bps once mentioned, after the publication last week of inflation figures that chilled the blood of operators, at 9.1% on an annual basis, in the widest base of products, food and energy included.

The statistical week will be rather poor in the first part and will thicken copiously in the second, with Thursday in particular the weekly claims for unemployment benefits and the Philly Fed (Philadelphia Fed manufacturing index), to follow after a rather disappointing monthly report. Also to be monitored are PMI activity indicators on Friday.

KEY GRAPHIC ELEMENTS

The technical board backdrop remains bright red.

The flagship index of technology stocks of the American dimension is still in a downward phase, tracing a chartist pattern with an oblique neck line, within a corridor with a bearish bias. The pattern remains heavily bearish within the channel. The next highly psychological threshold is at 10,000 points.

Positive opinion in the immediate future, on the scale of the session to come.

FORECAST

Considering the key chart factors 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 10560.00 points.

CHART IN DAILY DATA

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