Nasdaq Composite: More hesitation, but no downside bias

(News Bulletin 247) – Faced with rather dull macroeconomic indicators for the start of the week, the equity markets are hesitant to say the least. The Nasdaq Composite (+0.62% on Monday) is expected in negative territory, within narrow margins on Tuesday.

To report yesterday on the macroeconomic side, the very sharp contraction of the manufacturing index Empire State, at -31.3. The following additional information can be read in the statement from the NY Fed: “New orders and shipments plunged, and order books thinned. Delivery times remained stable for the first time in nearly two years and inventories rose slightly Labor market indicators showed a slight increase in employment, but a decline in the average workweek Although still high, the price paid index fell and the price received index remained stable. Looking ahead, businesses do not expect much improvement in economic conditions over the next six months.”

To be monitored on Tuesday, the monthly federal report on industry (volume of production and rate of use of productive capacities). In the immediate future, real estate figures half fig, half grape occupy the screens of the trading rooms with housing starts below expectations in July, and building permits above.

KEY GRAPHIC ELEMENTS

At this stage of the rise in prices, since June 17, a breathing phase is envisaged up to against the 20-day moving average (in dark blue), whose crossing with its 50-day counterpart (in orange), in a significant angle, released short-term upside potential.

FORECAST

In view of the key chart factors that we have identified, our opinion is neutral on the Nasdaq Composite index in the short term.

We will take care to note that a crossing of 13838.00 points would revive the tension in the purchase. While a break of 12140.00 points would relaunch the selling pressure.

CHART IN DAILY DATA

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