Nasdaq Composite: Missed target for job creation

(News Bulletin 247) – Bad news is good news. The Nasdaq Composite index is expected to rise (amplified compared to industrial, general, or broad indexes), following a completely missed target on the monthly federal employment report. Just published, the report shows that the US economy created over the period “only” 210,000 jobs in the private sector (excluding agriculture). With wage dynamics showing no signs of overheating, the report gives J. Powell a bit of slack. Already earlier in the week, Jean-Jacques Friedman – Investment Director of VEGA Investment Managers, a subsidiary of Natixis Wealth Management, wondered whether the appearance of this new variant would not ultimately grant the most precious asset to the big money manager: the time ?

“If caution is in order in the short term, Omicron is giving back time by allowing J. Powell not to bow to the pressure of recent statistics and to settle for more aggressive monetary tightening. In fact, investors are forecasting now two key rate hikes by the Fed in 2022, compared to three previously. ” What feed a rebalancing of forces on growth issues, particularly in the technological sector. And therefore resistance to the temptation to take profits, necessarily great at these valuation levels.

On the securities side, note the impressive reaction capacity during yesterday’s session of Apple, which ended on an equilibrium note at $ 163.76, despite information from the Bloomberg agency, according to which Apple would have indicated to Its supplier a contraction in demand for its phone model IPhone 13.

To be followed at 4:00 p.m. the PMI Services (ISM) complementing the satisfactory industrial data for Wednesday.

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 ask any questions.

A court terme:

The entry into a digestion phase, 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. A first bearish acceleration within this consolidation was expressed, Tuesday, and Wednesday, in a larger amplitude but less strong volumes.

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

PREVISION

In view of the key graphical 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 crossing 16212.00 points would rekindle the purchase tension. While a break of 15000.00 points would revive the selling pressure.

DAILY DATA CHART

©2021 News Bulletin 247