(News Bulletin 247) – Sudden cold snap, in an already chilly atmosphere – to say the least – after the publication of inflation figures (CPI) showing stronger than expected runaway prices in September across the Atlantic. A publication that takes on a special meaning in the aftermath of the Minutes of the Fed, whose main message to remember is the will, whatever the cost, of the Institution to fight against the rise in prices.
In detail, the consumer price index, excluding food and energy, jumped 0.6% in September, against a target of +0.4%. For the largest basket of products, inflation reached 8.2% at an annualized rate. Enough to augur a continuation without pause of the process of raising federal rates.
Increases in the housing, food and medical care indexes were the largest among many other causes of the seasonally adjusted monthly increase.
A publication which is combined with that, Friday, of the NFP report on the health of private employment.
“Once again, in this very unique period, “good news is bad news”, “clarifies Thomas Giudici, co-head of bond management at Auris Gestion, meaning that any good news on the health of the American economy is a further step towards pursuing a belligerent monetary policy.
In the aftermath, the Treasuries 10 yrs jumped, coming again to flirt with the symbolic threshold of 4%.
KEY GRAPHIC ELEMENTS
The small lateral transition that we foresee will have lasted three sessions, in volumes in free fall. A significant increase in this level of participation on the day’s falling session would give credence to the bearish scenario, even though the failure against a resistance zone (the 20-day moving average) is surgically observed. Beneath this short-term trend line, which is firmly under pressure, the opinion will remain negative on the flagship index of US listed technology stocks.
The ability to fill, if only partially, the wide gap that promises to open will be instructive. The highly symbolic threshold of 10,000 points is in danger.
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 11250.00 points.
CHART IN DAILY DATA
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