(News Bulletin 247) – A phase of widened lateralization, synonymous with nervousness, is settling below 11,500 points on the Nasdaq Composite, while investors are in a hurry to discover the content of the Minutes of the Fed tomorrow, before enjoying with family Thanksgiving holidays. Wall Street will be closed on Thursday and will reopen on Friday for a shortened session – in other words deserted by a large fringe of investors.
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.
To follow as a priority on the statistical agenda this Tuesday, the manufacturing index of the Richmond Fed at 4:00 p.m.
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 10260.00 points would relaunch the selling pressure.
CHART IN DAILY DATA
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