(News Bulletin 247) – After two consecutive sessions of decline, the pre-opening suggests a start to the session in the green for the Nasdaq Composite, subject to headwinds throughout the week, between disappointment on domestic consumption, chronic tensions on employment, and difficulty in interpreting the reopening of the post-Covid Chinese economy.
As a reminder, monthly retail sales, excluding automobiles, corrected (-1.1% against -0.5% expected) in December. The weekly registrations for unemployment benefits, once again below the 200,000 new unit mark, illustrated the pressures that are still just as strong on American employment. Tensions themselves generating inflation…
But 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.
To follow on the values ​​side, Alphabet (ex-Google), which announces the loss of 12,000 jobs.
To follow at 4:00 p.m. sales of old homes in the United States.
KEY GRAPHIC ELEMENTS
In the immediate future, the flagship index of technology stocks on the American side, although in a fundamental 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 tidied up 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 10960.00 points would revive the tension in the purchase. While a break of 10250.00 points would relaunch the selling pressure.
CHART IN DAILY DATA
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