(News Bulletin 247) – Particularly difficult weekend for growth stocks on Wall Street, mainly in the technology sector, with a downward acceleration in the Nasdaq Composite on Friday after the publication of figures half fig, half grape on US employment . The index, in relatively thick volumes, lost almost 2% to 15,085 points, even falling below the psychological threshold of 15,000 during the session. The latter has certainly been preserved, but the so-called bearish encompassing candle configuration bodes well for a continuation of a phase of technical readjustment in a state of great volatility. The time has passed for rally unconditional.
Friday on the statistical front, the climax was reached at 2:30 p.m. (Paris time) with the publication of the federal employment report, NFP report for Non Farm Payrolls. 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. Also published Friday, the final ISM PMI data for services came out well beyond expectations, close to 70 points.
It is the attitude of the Fed which, faced with rising prices and the still unclear consequences of Omicron on the economic recovery, which will determine the extent of future profit taking. While the question of the pace of the normalization of US monetary policy is called into question, inflation data (consumer prices) will be released on Thursday. Enough to serve as raw material for the Fed’s decision, expected week 50.
“The rapid contagion is worrying, although the effects appear to remain mild and vaccination rates across the world could avoid facing too much restrictions and too severe an impact on the economic recovery.”, For Vincent Boy (IG France).
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 only contracted 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. A broader 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. The ability to “hold” the 15,000 points will be essential.
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 15420.00 points would rekindle the purchase tension. While a break of 15000.00 points would revive the selling pressure.
DAILY DATA CHART
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Source: Tradingsat
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