(News Bulletin 247) – The flagship index of technology stocks on the American side ended in the red yesterday, for the fourth consecutive time (-0.56% to 11,816 points). Beware of the probable layout, this Thursday, of a combination of candles in three black crows, which would seriously degrade an already weakened configuration. In the immediate future, the opening slightly in the red does not yet militate for this pursuit combination.
Operators are nervously awaiting the main statistical markers of the day, namely the weekly registrations for unemployment benefits at 2:30 p.m. and the ISM manufacturing index at 4:00 p.m. The high point will be reached tomorrow with the publication of the NFP report (No Farm Payrolls), traditional monthly report on American employment, whose persistent tensions are sources of inflation… Yesterday the operators had a foretaste with the survey of the private firm in HR ADP which highlighted 132,000 creations jobs in the private sector (excluding agriculture), completely missing the target.
Nela Richardson, Chief Economist at consultancy ADP, commented on the latest survey: “Our data suggests a move towards a more traditional pace of hiring, likely as companies try to decipher the mixed signals from the economy. We may being at an inflection point, moving from superpowered job gains to something more normal.”
The Treasuries 10-year yields on 10-year government bonds continued to rise above 3.20%, weighing on appetite for growth stocks (files Growth), of which the index which interests us here abounds.
KEY GRAPHIC ELEMENTS
On black marubozu, in powerful volumes, the flagship index of technology stocks of the American dimension broke the neck line of a small figure in shoulder, head and shoulders, which signals the definitive end of the bullish leg started on the 17 June. The index broke its 50-day moving average (in orange). The last time this technical event happened (08/04), the clearings accelerated: -23% until June 16, in significant volatility.
Triple peaks are clearly emerging on iconic heavyweights of the index, like Tesla or NVidia. This in itself constitutes an alert.
FORECAST
Considering the key chart factors we have mentioned, our opinion is negative on the Nasdaq Composite index in the short term.
This bearish scenario is valid as long as the Nasdaq Composite index is trading below the resistance at 11990.00 points.
CHART IN DAILY DATA
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