(News Bulletin 247) – The upward readjustment of the Nasdaq Composite was brutal, the buying energy released having to be measured against the relief caused by the publication of the various consumer price indices for the month of October. CPIs showed a very noticeable slowdown in the pace of price increases, finally giving the impression that the Fed’s belligerent policy is bearing fruit. The market then began to dream, if not of a pause, of a softening in the process of tightening the monetary tap.
In the aftermath, the Treasuries 10-year yields, yields on 10-year federal sovereign bonds, fell very quickly below 4%.
The flagship index of technology stocks on the American side jumped 7.35% to 11,114 points, carried by its tech heavyweights, both in the entertainment and semiconductor sectors: Apple gained 8.90% at $146.87, MetaPlatforms 10.25% to $111.87, and Intel 8.14% to $29.76, not exhaustive.
In detail, prices, in their broadest sense, including energy and food, rose 7.7% at an annualized rate, against 8.2% last month, and 7.9% expected, according to the latest figures from the Census Bureau. , in seasonally adjusted data. Excluding volatile elements (food and energy), prices rose by 6.3%.
To follow as a priority on the statistical agenda this Friday, the American consumer confidence index (U-Mich), in preliminary data at 4:00 p.m.
KEY GRAPHIC ELEMENTS
The very wide gap, followed by a close far from the opening levels on Thursday, all in very heavy volumes, made it possible to give meaning to the crossing of the 50-day moving average (in orange). If the next challenge, namely the crossing of 11,460 points, were successful with as much participation, particularly from the point of view of a sectoral federation, the attraction effect of the bearish gap of September 13 would be felt.
FORECAST
Considering the key chart factors we have mentioned, our opinion is positive on the Nasdaq Composite index in the short term.
This bullish scenario is valid as long as the Nasdaq Composite index quotes above the support at 10310.00 points.
CHART IN DAILY DATA
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