Nasdaq Composite: Strong signal on the eve of the outcome of the FOMC

(News Bulletin 247) – The publication of weaker inflation than expected, on the eve of the outcome of the last Fed FOMC of the year, caused the technological issues of the rating to jump in pre-opening on Tuesday.

At an annualized rate, the consumer price index (largest basket) increased by 7.1% in November, against 7.7% in October. A sharp slowdown that beats the consensus. Excluding food and energy (volatile elements), prices rose by 6.0%. Something to relax the atmosphere on the eve of a Fed meeting where clues on the “terminal” rate will be gleaned, while the scenario of a 50 bp increase in Fed Funds is now almost confirmed.

The advantage is twofold for the markets, in the sense of Alexandre BARADEZ (IG France): that of the hope of a more “lenient” Fed on the one hand and that of a reduction in the risk of entering a recession deep. “Market players, who already see the end of monetary tightening and even anticipate a rate cut in 2023, are not worried about the impact of monetary tightening on the economy and anticipate a soft landing”, continues M BARADEZ .

See you tomorrow at 8:00 p.m. for the actual monetary policy decision and the Fed’s economic projections, then at 8:30 p.m. for the traditional press conference.

KEY GRAPHIC ELEMENTS

In the immediate future, the flagship index of technology stocks on the American side should reach the upper limit of a flag, around 11,460 / 11,500 points, beyond which a breathing zone would open, subject to increase in volumes and sectoral federation (IT, entertainment, semiconductor, robotics, IA).

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 10260.00 points.

CHART IN DAILY DATA

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