(News Bulletin 247) – The atmosphere should refresh somewhat on the rating of growth records across the Atlantic, after the “small” stone thrown into the pond by Microsoft, which published yesterday, after the stock market. The “M” in the acronym GAFAM delivered disappointing revenue projections for Azure, its cloud computing services division. Ironically, many office services in the Microsoft suite, like email Outlook and the meeting tool Teams, were down on Wednesday. A “network configuration” failure, the group quickly announced.
The publication will therefore call for more restraint, before the continuation of the ball of the files of growth (Growth). Tesla, eagerly awaited, will publish after-market this Wednesday.
More restraint also at the approach of important deadlines: PCE prices, the flagship measure of the appreciation of inflation by the Fed, and the FOMC, whose outcome is next Wednesday. “The Fed has […] abandoned the 75bp hikes, after 4 successive ones and could even, according to the expectations of market players, increase by only 25bps at the FOMC on February 1 next “for Vincent BOY (IG France). Fed Funds from 4.50% to 4.75%
“The inflection in the rise in rates seems to be confirmed for the members of the FOMC, despite the exits (unsurprisingly) of James Bullard and Loretta Mester who are still campaigning for more marked increases” remarks Thomas Giudici, head of bond management of Auris Management.
On the macroeconomic side, the PMI activity indicators, in 1st estimates for the current month, exceeded expectations yesterday, however, coming out well below the 50 mark, at 46.6 for services and 46.8 for industry .
KEY GRAPHIC ELEMENTS
We are now witnessing the major test of the upper limit of a wide range at 11,450 points. The observation at this stage of volumes, the combined pace of candles, volatility, and sectoral federation will be essential to characterize the test. a start of the session in the red is expected on Wednesday, corroborating the idea of an intermediate ceiling, the crossing of which is not in the news. The almost harami bearish with doji in the second candle, already gave the alert on Tuesday January 24 at the close.
FORECAST
Considering the key chart factors we have mentioned, our opinion is negative on the Nasdaq Composite index in the short term.
This bearish scenario is valid as long as the Nasdaq Composite Index is trading below the resistance at 11450.00 points.
CHART IN DAILY DATA
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