(News Bulletin 247) – With the rise in yields on 10-year sovereign bonds (10-yr treasuries), now immediately close to 3.90%, the Nasdaq Composite (-0.58% on Tuesday), particularly sensitive by nature its composition to the monetary issue, should open in negative territory on Tuesday, for the first session of the session. Wall Street remained closed yesterday due to a holiday (Commemoration of the birth of George Washington).

As a reminder on Thursday, the producer price indices for the month of January in the United States, well above expectations (+0.7%), as are the weekly registrations for unemployment benefits, below 200,000 new units , have once again shown, as leading inflation indicators, the strains on the economic machine. A new reminder for the Fed that maintaining a firm monetary policy throughout 2023 will be essential.

“Proponents of the ‘persistent inflation’ scenario cited the strength of the labor market, easing financial conditions and the V-shaped rebound in Chinese economic growth. To support the thesis of the persistence of inflation, the other set of data to be released was the January Purchase Price Indices (PPIs), which together are considered a leading indicator of future consumer prices.” reads in a weekly market commentary from Muzinich & Co.

It is this prospect that brings 10-year Treasuries dangerously close to 4%, the psychological threshold beyond which the assets most sensitive to monetary issues would experience an accelerated decline. Like US tech growth stocks, for example…

In this context, the main statistical releases of the week (Fed Minutes tomorrow and PCE price Friday) will be decisive. In the immediate future, we will follow at 3:45 p.m. the advanced data of the services and industrial PMIs for the month of January and at 4:00 p.m., the prices of existing housing.

KEY GRAPHIC ELEMENTS

The consolidation within the framework of a new range continues, between 11,450 points (support, ex-resistance), and 12,260 points (top of the amplitude of the framework defined from January 27 to February 02). A visit from this day of the lower limit of this work strip is planned. The opportunity to measure its

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 12260.00 points.

The News Bulletin 247 board

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

CHART IN DAILY DATA

Graphic made from the software Prorealtime



function creatOutbrainJs() {
const creatJs = document.createElement(“script”);
creatJs.defer = true;
creatJs.src = “https://widgets.outbrain.com/outbrain.js”;
return document.body.appendChild(creatJs);
}

window.didomiOnReady = window.didomiOnReady || [];

window.didomiOnReady.push(function(Didomi) {
console.log(“Didomi ready “);

Didomi.getObservableOnUserConsentStatusForVendor(164)
.filter(function (status) { return status !== undefined })
.subscribe(function(consentStatus) {
if (consentStatus === false || consentStatus === true) {
console.log(“Didomi consent -> exécution du script outbrain “, consentStatus);
creatOutbrainJs()
}
});

});