(News Bulletin 247) – The “menu” will be extensive this Wednesday on Wall Street, which will be closed tomorrow due to Thanksgiving – the menu will be extensive there, for different reasons. This Wednesday, it will be the Fed Minutes that will focus the attention of operators, in the dark after recent lenient publications (IPC, PPI), but maintaining a firm tone from leaders of regional offices of the Fed. See you at 8:00 p.m. for this report of the last monetary policy meeting. It will be specified that Wall Street will reopen on Friday, for a shortened session only.
While the slowdown in the progression of US CPIs had augured, two weeks ago, a relative easing of the Fed’s monetary policy, the signs of a continuation of the tightening have indeed multiplied thereafter. James Bullard, chairman of the St. Louis branch of the US Federal Reserve, known for his “hawkish” positions, said rates should move above 5% to curb inflation.
“Federal Reserve communication regarding data releases over the past two weeks appears consistent with a ‘slower’ pace of rise, but a ‘higher’ terminal rate,” reads Muzinich’s weekly market commentary & Co.
For the time being, weekly claims for unemployment benefits, without showing any easing on the employment front, came out above the consensus level for week 46, at 240,000 new units. Durable goods orders, excluding transport equipment, gained 0.5% month on month in October, beating the target.
KEY GRAPHIC ELEMENTS
The structure of the Tuesday 15/11 candle, hanging, flanked by two candles with red bodies located largely below Tuesday’s low points, suggests an early loss of steam in the rebound started on November 10 on the gap. The gap (another, older, bearish one dating from September 13) has lost its power of attraction for the moment, with the 11,460 points acting as resistance.
FORECAST
In view of the key chart factors that we have identified, our opinion is neutral on the Nasdaq Composite index in the short term.
We will take care to note that a crossing of 11250.00 points would revive the tension in the purchase. While a break of 10779.00 points would relaunch the selling pressure.
CHART IN DAILY DATA
©2022 News Bulletin 247
