(News Bulletin 247) – Undecided at the start of the session, the Nasdaq Composite index accelerated sharply upwards with 10-year Treasuries, following the intervention of J Powell, organized by the Economic Club of Washington, DC The balanced nature of the intervention, between the interpretation of the latest employment report and the need to keep Fed Funds at a firm level, will have erased the fears of a large segment of investors. J Powell will not have, in concrete terms, broken the mood, after the publication on Friday of an index of strong tensions on private employment, which created more than 500,000 jobs in January, against a backdrop of contraction of the labor force. work available.
As a reminder, at the end of the first FOMC of the year last week, the Fed announced a 25 basis point increase in its Fed Funds, bringing them to 4.75%, for the upper limit. “While Jerome Powell stuck to his previous outings, arguing that it was still too early to take a break from rising rates and that we shouldn’t claim victory too soon in the fight against inflation, investors did not consider the speech to be hawkish enough to revise their optimistic expectations, preferring to focus on certain more accommodating passages such as recognizing that the disinflation movement was faster than expected.”, for Thomas Giudici, head of bond management at Auris Gestion.
To follow as a priority on the macroeconomic agenda this Wednesday across the Atlantic: wholesale stocks at 4:00 p.m. and oil stocks at 4:30 p.m.
KEY GRAPHIC ELEMENTS
We did not witness an island reversal on Friday, due to the high shadow drawn. What accredit the scenario of a volatile consolidation rather than a reversal. The idea of ​​a pullback on the 11,450 points remains entirely credible at this stage. In any case, the new working technical band is between 11,450 and 12,260 points.
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 12260.00 points would revive the tension in the purchase. While a break of 11450.00 points would relaunch the selling pressure.
CHART IN DAILY DATA
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