(News Bulletin 247) – The Nasdaq Composite index reversed course sharply on Wednesday, weighed down by quarterly copies from Microsoft (-7.72% to $231.32), and Alphabet (-9.14% to 94, $93), two tech rating heavyweights with considerable influence. MetaPlatforms (Ex-Facebook) is expected to fall sharply today following the publication yesterday after trading of a disappointing quarter in terms of earnings.
A halt in the takeover of the buying camp that had prevailed since Friday and the publication of an article by the Wall Street Journal according to which certain members of the Federal Reserve would not be against the idea of slowing down the pace of its monetary tightening starting in December before halting key rate hikes at the beginning of next year. Also according to this article, the institution would be heading for a rate hike of 0.75 percentage points at its next meeting in early November.
The Fed will complete its next FOMC on Wednesday 02 November.
On the macro side, the Conference Board’s consumer confidence index came out this month at 102.5, down sharply below expectations. Note this Wednesday a much larger than expected widening of the deficit, certainly structural, of the trade balance of goods in the United States: -92.2 billion dollars, for the month of September. To be followed across the Atlantic this Thursday, the very first estimates of Q3 GDP, durable goods orders and weekly registrations for unemployment benefits at 2:30 p.m.
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 tombstone, which illustrates the breathlessness of the reaction started on 13/11.
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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