(News Bulletin 247) – Caution should remain in order this Monday from the opening on the Nasdaq Composite, while hopes of an easing of anti-Covid restrictions in China dissipate, the country having reported on Monday the death of two patients with Covid-19 in Beijing; several large cities are also tightening health restrictions. Caution should also be attributed to the absence, since Thursday and a disappointing Philly Fed, of major statistical indicators. We will have to wait until Wednesday with the ISM and the consumer confidence index (U-Mich) to be able to deal with sharp benchmarks. In the immediate term, the bottom line remains the same, namely a feeling of caution as the signs of a continuation of a bellicose monetary policy multiply.
The “Minutes” of the Fed will be published on Wednesday. “In general, little new information is given in relation to the monetary policy meetings to which it refers, but given the differences in speech between Jerome Powell and the other members or even in relation to the written record of the FOMC, investors will be particularly attentive to it”, warns Vincent BOY (IG France).
Note that the week will be short on the other side of the Atlantic, with a Thursday closing for Thanksgiving and a shortened session on Friday.
The yield on 10-year sovereign bonds stabilized at around 3.80%.
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 10310.00 points would relaunch the selling pressure.
CHART IN DAILY DATA
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