(News Bulletin 247) – Note first of all that the doors of the American market remain open this Monday, October 10, but this date corresponds to a public holiday for the rest of the economy (columbus day), stock market activity should be very reduced. The Nasdaq Composite index is expected to remain groggy, according to pre-opening data, after sharp losses of 3.80% to 10,652 points on Friday, on the heels of very buoyant employment figures, suggesting an uninterrupted continuation of growth. an ultra-aggressive monetary policy from the Fed.
With regard to the main lessons of this NFP (Non Farm Payrolls), the dynamics of wage increases did not get carried away (+0.3% month-on-month in September), but the increase in job creations in the private sector (excluding the agricultural sector) surprised by its pace, at +263,000. The unemployment rate – this was not in the Fed’s plans either – contracted sharply to 3.5% of the active population against a consensus of 3.7%. The change in total non-farm payroll employment for July was revised up by 11,000 from +526,000 to +537,000, and the change for August remained at +315,000. Employment in July and August combined was 11,000 higher than previously reported.
On the value side, AMC (Advanced Micro Devices Inc) plunged 13.87% to $58.44, in an explosion of transaction volumes (164,000,000 coins exchanged), hit by a profit warning. A warning that caused turbulence across the wider industry: Qualcomm lost 3.49%, Boradcom 3.97%, Texas Instruments 4.36%, Intel 5.37% and Micron Tech 3.13 %.
No US macroeconomic figures are expected on Monday. We will have to wait until tomorrow and the NFIB index of small businesses to open the weekly statistical ball.
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.
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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