(News Bulletin 247) – The Nasdaq Composite index gained 1.45% to 11,358 points on Tuesday, still with the support of the ebb of Treasuries 10 years, thanks to recent inflation publications (CPI), which showed a slight slowdown in the rate of increase. The situation nevertheless remains marked by nervousness, against a backdrop of heightened diplomatic tensions following the explosion of a Russian-made missile in Polish territory, not far from the border with Ukraine.
Yesterday, the manufacturing index of the New York Fed (Empire State index) returned to positive territory, at 4.5 points, largely beating the target. “New orders were down slightly, while shipments were up slightly. […] Regarding the labor market, indicators point to a solid increase in employment and an increase in the number of hours worked. Input prices rose at about the same pace as last month, as the rise in selling prices accelerated. In contrast, companies expect business conditions to worsen over the next six months.”
The market is in a phase of rebalancing, especially on growth stocks, led by American technology, as long as a trends well established is no return on sovereign bond yields.
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, especially from the point of view of a sectoral federation, the attraction effect of the bearish gap of September 13 would be felt. Its upper bound is worth 12,169 points.
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 12260.00 points would revive the tension in the purchase. While a breakout of 10210.00 points would revive the selling pressure.
CHART IN DAILY DATA
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