(News Bulletin 247) – Since its annual high points of February 2 (12,269 points during the session), the tide has reversed on the Nasdaq Composite index, by the very nature of its composition very sensitive to the monetary question, on background of tensions on the yields of long-term sovereign bonds. The Friday publication of PCE (personal consumption expenditures), showing stronger than expected inflation in January, in particular, contributed to the tense atmosphere. Combined with tensions that are still just as intense on the employment front, this statistic, the Fed’s favorite measure in its assessment of price dynamics, is forcing investors to revise their anticipation of the pace of the rise in Fed Funds as well as than the value of the terminal rate.

Mr. Thomas Giudici, head of bond management at Auris Gestion, sheds the following light: “These data would therefore corroborate the new market scenario of a “no landing” (after the debates between the proponents of a “hard landing and those of a “soft landing”). The other side of the coin of this renewed growth, the fall in inflation could therefore take longer than expected, which, to use the words of Janet Yellen, will not happen. not “in a straight line”. As such, the publication last Friday of PCE inflation above expectations, both monthly and annually, confirmed these fears.”

To follow this Tuesday the American ISM services at 4:00 p.m. Note the publication yesterday of the very followed US consumer confidence index (Conference Board), in surprise contraction to 102.9.

KEY GRAPHIC ELEMENTS

Without a strong reaction and confirmed by the volatility even during the session, the old range between 10,250 and 11,450 points is the preferred working base for future sessions. The oscillator is in full navigation from a high limit to a low limit. Negative short-term opinion issued.

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 11960.00 points.

The News Bulletin 247 board

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

CHART IN DAILY DATA

Graphic made from the software Prorealtime



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