(News Bulletin 247) – The Nasdaq Composite, the flagship index of technology stocks on the American list, by its very nature rich in growth technology stocks, will experience a potentially sporty week, both the opportunities to consider a hardening, or easing, monetary policy will be numerous.
Due in part to the half-yearly hearing, tomorrow and Wednesday, of J Powell, Chairman of the Fed, before the American Parliamentarians. The clear opportunity to have the reaction of the top of the Fed to the latest publications of PCE, its favorite measure of inflation.
On the other hand, due to publications throughout the week of benchmarks on employment (JOLTS, ADP, weekly registrations for unemployment benefits, and NFP in high point on Friday).
Major benchmarks which will constitute a solid working basis for the Fed in the construction of its monetary policy for the months to come, and which will in any case allow in the short term, to tip the balance in favor of +25 or +50 points Fed Funds hike basis for the next FOMC.
Because the state of tensions on employment is not only strong, but chronic. “Jobs are plentiful in the United States, but applicants are rare,” coldly summarizes Christian Scherrmann, American economist at DWS, who observes that “there are almost twice as many job offers as job seekers. The last time this ratio was this high was in the midst of World War II, when the industry had to reorient itself radically towards the production of weapons and many young Americans were serving overseas. “
On Thursday, weekly registrations for unemployment benefits once again came out below the threshold of 200,000 new units.
“Central bankers and investors need to worry about unemployment rates, wage trends and inflation in the immediate term. So it’s no wonder that bankers and investors are so dependent on data and that interest rate and inflation expectations remain so volatile in the financial markets,” warns the economist.
To be continued this Monday, orders for industry at 4:00 p.m.
KEY GRAPHIC ELEMENTS
The confrontation is still just as intense around the pivot chart zone at 14,450/11,500 points, the former upper limit of a vast range, whose reintegration this week is far from being ruled out.
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
CHART IN DAILY DATA
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