(News Bulletin 247) – The Nasdaq Composite index (-1.12% to 11,196 points) should open significantly higher on Tuesday, in the wake of hopes of easing relations between Washington and Beijing, and statistical publications attractive, notably in the wake of the consumer price indices published on Thursday. The producer price index increased “only” by 0.2% on a monthly basis (stable excluding food and energy) in October, while the consensus foretold a more pronounced rise in prices.
In addition, the New York Fed’s manufacturing index (index Empire State) 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.”
Monthly industrial production data (October) as well as the production capacity utilization rate will be published tomorrow.
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
Considering the key chart factors we have mentioned, our opinion is positive on the Nasdaq Composite index in the short term.
This bullish scenario is valid as long as the Nasdaq Composite index quotes above the support at 10310.00 points.
CHART IN DAILY DATA
©2022 News Bulletin 247
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
