(News Bulletin 247) – We witnessed the beginning, yesterday, throughout the session, of a legitimate movement at this stage, of one-off profit-taking on the Nasdaq Composite. Profit-taking that was grounded in generally disappointing statistics, particularly on the American consumer front. Monthly retail sales, excluding automobiles, corrected (-1.1% against -0.5% expected) in December.
The backdrop nevertheless remains the same and acts as a technical straightjacket on the index, framed within a wide range between 10,250 and 11,450 points. The market mood remains permeated by the idea that the efforts of the Fed in its unpopular process of monetary tightening are beginning to bear fruit. The latest CPI (consumer price index) clearly illustrated this last week.
“The market remains confident that the Fed will not raise rates as much as it indicated in the December projections. Fewer rate hikes create favorable market dynamics for risk (equities, credit and duration included) against a drop in the dollar”, for Axel Botte, International Strategist at Ostrum AM. “However, it cannot be ruled out that the reopening of China will induce an early rebound in oil prices”, nuances the asset management professional. This is confirmed by the International Energy Agency (IEA).
In the immediate future, while the Philadelphia Fed’s manufacturing index is providing satisfaction, by exceeding expectations, weekly jobless claims, once again below the 200,000 new units mark, illustrate the still strong tensions on American employment. Tensions themselves generating inflation…
KEY GRAPHIC ELEMENTS
In the immediate future, the flagship index of technology stocks on the American side, although in a downward trend, is evolving in a range whose limits are well defined, between 10,250 and 11,450 points. Navigations from one to the other of its terminals, for the next few weeks, are expected, before the affirmation of a directional. The high wick of the candle built on Monday January 10 attests to this. Resistance forces are gradually settling near the 50-day moving average (in orange), the direction of which will be closely monitored. She is currently undecided. A continuation of the oscillations in the heart of the range is expected.
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 10250.00 points would relaunch the selling pressure.
CHART IN DAILY DATA
©2023 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.
