(News Bulletin 247) – The Nasdaq Composite index, in the absence of major surprises in the Fed Minutes published yesterday (8:00 p.m., Paris time), should rely on a major support zone, namely the former upper limit of a horizontal channel, at 11,450 points. If the traditional report of the last meeting of the Fed did not bring sharp elements, other justices of the peace are expected for the rest of the week: the first estimates of the American GDP at 2:30 p.m. this Thursday, and PCE (personal consumption expenditures) prices tomorrow, the Fed’s preferred measure of inflation.

This report of the last monetary policy meeting of the powerful monetary institution headed by J Powell is in line with expectations, namely those of a balance of power between hawkish and dovish, of a confirmation of the will to want to fight against chronic inflation. While being aware that in the interval, between the FOMC and the publication of the Minutes, many publications showing an overheating of the American economic machine have multiplied, in particular on employment.

“Upward revisions to previous months have shown that inflation is persisting and not falling as rapidly as the Federal Reserve (Fed) might hope,” note strategists at Muzinich & Co, for whom “supporters of the scenario of “persistent inflation” cited the strength of the labor market, easing financial conditions and the V-shaped rebound in Chinese economic growth. data set to be released was the January Purchase Price Indices (PPIs), which together are considered a leading indicator of future consumer prices.”

KEY GRAPHIC ELEMENTS

The flagship index of technology stocks on the American side, after 3 sessions of sharp decline on the rise in bond yields, joined, on harami in a cross, an interesting support zone which, as seen above, corresponds to the upper limit of an old range. A buying expression of reaction is expected in the short term on these levels, within a band whose amplitude will have been defined by the two sessions of strong rises at the very beginning of February.

FORECAST

Considering the key chart factors we have mentioned, our opinion is positive on the Nasdaq Composite index in the short term.

This bullish scenario is valid as long as the Nasdaq Composite index quotes above the support at 10250.00 points.

The News Bulletin 247 board

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

CHART IN DAILY DATA

Graphic made from the software Prorealtime



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