(News Bulletin 247) – As we enter “the hard” in the ball of quarterly tech giants, after copies very diversely appreciated (Netflix, Tesla), the Nasdaq Composite is expected in the red this Friday, on very marked background to the rise in 10-year sovereign bond yields. The Treasuries 10 years, an essential barometer and essential framework for those working on the index, now very clearly exceeds the 4% threshold, at 4.314% at the time of writing these lines.
The latest signals militating for a continuation of an offensive monetary policy (on prices, or tensions on the labor market just yesterday), continue to exert pressure. The scenario of a new tightening of 75 basis points on the Fed Funds at the end of the next FOMC is more than ever on the table.
The weekly registrations for unemployment benefits amount to 214,000 new units, still as close to this bar of 200,000 which rhymes with chronic tensions on the American job market.
For statistical completeness, the Philly Fed (Philadelphia Fed Manufacturing Index) dipped to -8.7, missing expectations.
Minneapolis Federal Reserve (Fed) Chairman Neel Kashkari said on Wednesday that the Fed would not be able to pause its rate hikes if inflation continues to soar, even if its rates hit 4.50. %.
No statistical figures of major importance are on the agenda this Friday.
KEY GRAPHIC ELEMENTS
The powerful bullish engulfing structure, ample, augurs at this stage a technical reaction, which has no reversal value however. A little oxygen that could fill the gap of October 07, at first. Observing volumes and sectoral federation will be essential to gauge the quality of the rebound, and therefore its durability. The relapse following the rebound could be brutal towards the symbolic threshold of 10,000 points.
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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