Nasdaq Composite: Hangman structure validated

(News Bulletin 247) – While the yields of 10-year federal sovereign bonds are starting to rise again, albeit still timidly, the Nasdaq Composite, by the very nature of its composition very sensitive to monetary policy, is expected to be in the red in the future. opening this Thursday, while the scenario of a continuation of an equally bellicose strategy on the part of the Fed is gaining ground. The Fed’s intentions remain at the heart of the debate, especially since the latest inflation figures, slightly down for the CPIs, have fueled the beginnings of hope.

In the immediate future, the market will have to deal with a battery of economic statistical indicators, published one hour before the opening of Wall Street. Among the main lessons, apart from the real estate figures which came out perfectly in line with expectations, the Philly Fed (Philadelphia Fed manufacturing index) was particularly disappointed, sinking further into negative territory at -19.4, completely missing target. At the same time, weekly registrations for unemployment benefits, remaining close to 220,000 new units, confirm the idea of ​​persistent tensions on the labor market, tensions that generate inflation.

KEY GRAPHIC ELEMENTS

The structure of Tuesday’s 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

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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