(News Bulletin 247) – It’s time for the technical rebound on the Nasdaq Composite Index, and its length, amplitude, and accompanying volumes will speak volumes about the strength of the initial downtrend. Yesterday the flagship index of technology stocks on the American side finally traced a candle typical of a very short-term reversal of steam, still reeling, however, from the very belligerent tone of the Fed at the end of the last FOMC last week. .
Vincent Manuel, Chief Investment Officer, Indosuez Wealth Management subscribes “however to the idea that a more accommodating turn could occur in the first half of 2023. Investors must now adapt to a new reality: this Fed is ready to further lower economy and seems to be convinced that a plateau of high rates is necessary to bring inflation down by ending the wage/price spiral.”
On the macroeconomics side, the week will be important with major events, notably PCE prices (the Fed’s preferred measure of inflation) and final US GDP data for the second quarter. But in the immediate future, the main meeting on Tuesday is the index of consumer confidence (Conference Board). A key indicator for an economy where traditionally most of the creation of national wealth depends on domestic consumption. Meet at 4:00 p.m. (Paris time).
KEY GRAPHIC ELEMENTS
On the graphic, technical and chartist side, the 11,460 points, put under surveillance, dropped, in conditions of volatility and volumes giving credence to the bearish message. A break in the chartist neck line is fully validated, giving the signal to enter a new working base, between 10,560 and 11,460 points. Very quickly the oscillations melted in the heart of this zone. In the immediate future, a short phase of rebound in protest is to be anticipated. We will carefully observe its characteristics, in particular from the point of view of divergences / convergences between prices and volumes.
FORECAST
Considering the key chart factors 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 10560.00 points.
CHART IN DAILY DATA
©2022 News Bulletin 247
I am Janice Wiggins, and I am an author at News Bulletin 247, and I mostly cover economy news. I have a lot of experience in this field, and I know how to get the information that people need. I am a very reliable source, and I always make sure that my readers can trust me.
