Nasdaq Composite: Full validation of a gravestone doji

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(News Bulletin 247) – Amazon, MetaPlatforms which published disappointing quarterly results in the eyes of the market, Netflix which is entering a new strategic phase with the monetization of password sharing, Twitter which is also entering a new era for other reasons … There is no shortage of sources of concern about the stars of American tech, one of whose flagship indices, the Nasdaq Composite, lost 1.63% yesterday to 10,792 points. Since the start of the year, the decline has been more than 30% against a backdrop of tightening US monetary policy.

To be monitored are current home sales and the consumer confidence index (U-Mich, revised data, at 4:00 p.m.). Yesterday, the very first estimates of Q3 GDP in the United States rose to 2.6% quarter on quarter, returning to growth beyond expectations. Enough to encourage the Fed in continuing to tighten the monetary tap. In the immediate future, operators have just taken note of another very important figure in the eyes of the Fed in the strategic construction of its policy, namely PCE consumer prices, which rose at a monthly rate of 0.5 %, excluding food and energy, in line with expectations.

Next week will be very statistically oriented on the American employment front, with the monthly NFP report on Friday (for No Farm Payrolls) of October. Operators will have the traditional “taste”, Wednesday, with the very followed (because reliable) survey of the private firm in human resources ADP. So many opportunities to precisely measure the degree of tension on employment and wages, dials followed very closely by the Fed in the construction of its monetary policy.

KEY GRAPHIC ELEMENTS

The flagship index of technology stocks of the American dimension traced, on the amplitude of the body of the candle of the day before, a candle in doji tombstone, which illustrates the breathlessness of the reaction started on 13/11. This candle was confirmed the next day by a marubozu elongated, graphic illustration of a continuous mobilization of the sales camp.

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

©2022 News Bulletin 247

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