(News Bulletin 247) – Last week was an opportunity to redefine the scope of a new working framework in tidy, in the form of a decline in prices, as operators digested the offensive tone of several members of the Fed, in particular after the content of the last monthly report on employment. As a reminder, the latest NFP report (No Farm Payrolls) highlighted job creations of more than 510,000 in the private sector, against a backdrop of a contraction in unemployment to 3.4% of the active population. These data relate to the month of January.

“The outlook for Fed rate hikes has also been improving for a few sessions, showing the possibility of seeing 3 new rate hikes (against 1 previously), before a potential pause”, remarks Vincent BOY (IG France), in a note from market.

In this context, which automatically causes a rise in sovereign bond yields, major macroeconomic events will punctuate the week. In particular the various consumer price indices across the Atlantic. One of the hot spots on the calendar is to tick (tomorrow, 2:30 p.m.) with the publication of the CPI expected to slow down to +6.2% at an annualized rate. Any deviation from the consensus will potentially have consequences on prices, with an “outperformance” of the Nasdaq Composite index, on the S&P 500, broadened and generalist for its part.

KEY GRAPHIC ELEMENTS

We did not attend Friday 03/02 an island of reversal (island reversal), due to the high drawn shadow. 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.

The News Bulletin 247 board

Nasdaq Composite
Neutral
Resistance(s):
–
Medium(s):
–

CHART IN DAILY DATA

Graphic made from the software Prorealtime



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