Nasdaq Composite: A Small Step Forward, A Big Backward

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(News Bulletin 247) – If the appearance of the new “Omicron” variant will have revealed the legitimate hypersensitivity of technological growth stocks, by triggering a corrective wave, a punctual rebalancing of forces is already at work. Reassured by the words of White House adviser Anthony Fauci, the markets are already benefiting from the lows on high valuation multiples.

In his eyes, the Omicron variant does not seem to present a particularly important degree of severity – at least according to the data collected so far. It will potentially take a few weeks to verify the proportion of severe cases, but according to South African doctors who were the first to identify it, it seems so far to cause milder symptoms than the previous strains and has not resulted in a large increase in hospitalizations (although the observed sample was small).

Yesterday the Nasdaq Composite index managed to gain 0.98% to 15,225 points, in volumes however lower than the day before.

“The high rate of hospitalization among children and its high transmissibility suggests that the Omicron variant may be able to withstand current vaccines, which is worrying to say the least. We are awaiting further clinical data, which will be essential for determine the extent of any new confinements, “cautiously tempers César Perez Ruiz, Head of Investments and CIO at Pictet Wealth Management.

In any case, the discovery of the Omicron variant of Covid 19 is […] the warning that at least as much as inflation, the virus remains a determinant of the markets which must be approached not as a hypothesis, but as a certainty with an unknown temporality “, summarizes Alexandre Hezez, strategist for the Richelieu Group.

The phase of high volatility that began on Monday, November 22 on the school’s bearish encompassing is probably not over.

In the statistical chapter Monday, nothing to put in their mouths. This Tuesday, few sharp things to report on this front. It must be said that the operators are already waiting for consumer price (Friday), decisive raw material in feeding the Fed’s thinking, even though inflation – it must be said – is no longer transitory. In the meantime, note the figures in line with expectations on the monthly trade balance deficit.

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. This was the case during the last two sessions, in low shade.

PREVISION

In view of the key graphical factors that 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 15000.00 points.

DAILY DATA CHART

Nasdaq Composite: A Small Step Forward, A Big Backward (© ProRealTime.com)

©2021 News Bulletin 247

Source: Tradingsat

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