Nasdaq Composite: Ignoring the Omicron and Manchin dangers, the index remains very firm

(News Bulletin 247) – Seeming to ignore the Omicron danger, and the major political setback suffered by J Biden, the Nasdaq Composite continued to gain height on Thursday (+ 0.85% to 15,653 points), in trading volumes however declining as the Christmas holidays approach.

In the statistical chapter, many benchmarks to report yesterday on the American side.

– the PCE price index (Personal consumption expenditures), a flagship measure for the Fed in the construction of its monetary strategy. Often preferred measure compared to the different CPIs (consumer price indices). In corrected data for food and energy (volatile elements), prices rose in November, at a monthly rate of 0.5%, beyond the consensus, according to the latest report from the Bureau of Economic Analysis.

– Expectations also exceeded on durable goods orders up 2.5% monthly, in particular thanks to the automotive sector.

– RAS on the side of household expenditure and income, which stands out this month perfectly in the target, just like the corrected data of the household confidence index (U-Mich)

– finally, weekly registrations for unemployment benefits remain around 200,000 new units, continuing at an inevitably moderate rate from now on, their slow decline.

No major statistics are on the agenda today.

We will note, at this stage, the impressive emblematic files of renewable energies which had been heavily penalized at the very beginning of the week, Monday, like Plug Power (-8.13% to $ 27.33), Sunrun (-8.15% to $ 31.44), First Solar (-7.94% to $ 85.76), Renewable Energy Group (-5.78% to $ 41.70), Beam Global (-8, 03% to $ 20.03). We also mention BLINK Charging (-5.85% to $ 26.56), SolarEdge Technologies (-10.56% to $ 258.36), Canadian Solar (-5.27% to $ 30.18), SunPower Corp ( -7.37% to $ 19.86), or even Clearway Energy (-2.96% to $ 34.15). Files sensitive in essence to the political setback suffered by J Biden because of the arm wrestling – the no is final according to its author – of Senator J Manchin to vote the social and environmental plan of the BBB plan, the cornerstone of his entire presidency.

Recall of the facts: a single Senator, (Democratic camp, West Virginia) Joe Manchin, blocks the vote on the BBB (Build Back Better) plan, a plan of more than $ 1,700 billion which includes major social and environmental aid and investments . It is “following this announcement” that “Goldman Sachs has decided to reduce its growth prospects for 2022 in the United States to 2% against 3% for Q1, 3% against 3.5% for Q2 and 2 , 75% against 3% for Q3 “, noted Vincent Boy.

And this no is “final”, announced Joe Manchin on television … He thus alone blocks the vote, the Democrats not reaching the majority for this one. Indeed, 50 seats out of 100 are currently occupied by Republicans in the Senate. By counting the vote of Kamala Harris (Vice-President of the United States and President of the Senate according to the Constitution), the Democrats gather 50 votes … Except that Kamala Harris has the right to vote, only to decide in case of equality!

Joe Manchin’s firm NO to Joe Biden BBB reform plan is an extremely important political setback. First of all it was indeed a strong campaign pledge from the current president. Democrats are divided on whether to use public funds in the face of abysmal US debt. Finally, it could also question the Fed’s monetary decisions in the face of declining growth, a resurgence of Covid cases and a potential stabilization of inflation “, summarizes John Plassard (Mirabaud).

KEY GRAPHIC ELEMENTS

Regarding the substantive technical framework, at this stage unchanged:

Since October 28 and the registration of new historic highs after those of September 07, the flagship index of technological stocks of the American stock market has systematically closed on the high points of the session, in strong volumes, which contracted only very little . The buying side, fully mobilized, does not ask any questions.

A court terme:

The flagship index of technological stocks on the American stock market has just achieved a fairly clear double support on its 100-day moving average (in orange) which is more than ever a technical and graphic “justice of the peace”. He certainly gave in on Monday, but without closing on the low points of the session. A rapid reinstatement would rhyme with a false exit. This is what happened on Tuesday, in equivalent volumes. We must expect high volatility, and the absence of a buying or selling federation. Once again, the look of the weekly candle will be decisive. Unless there is a major surprise, the latter should be pleasant.

PREVISION

In view of the key graphical 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 crossing 15792.00 points would rekindle the purchase tension. While a break of 15000.00 points would revive the selling pressure.

DAILY DATA CHART

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