Nasdaq Composite: Quivers on 10-year Treasuries

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(News Bulletin 247) – Yesterday the main US equity indices closed in scattered order, due to the differentiated impact of a tremor in US long rates. The Dow Jones, rich in banking and industrial stocks, therefore oriented Value, managed to gain 0.59% to 36,799 points, while the Nasdaq Composite, rich in technological growth records, suffered some profit-taking (-1.33% to 15,622 points). The Treasuries at 10 years are already ebbing, in the immediate vicinity of 1.65, allowing the Nasdaq to probably limit losses at the opening on Wednesday.

In the statistical chapter yesterday; two disappointments in the sense of the gap to consensus, concerning the ISM manufacturing index, at 58.7, in sharp contraction despite a 19th consecutive month of expansion (score above 50), and the new job offers (JOLTS), which missed expectations. What to direct the magnifying glass to the ADP investigation which will be published this afternoon, before the federal NFP report on Friday.

Timothy R. Fiore, CPO of Ryder, and ISM member, commented on the leading indicator numbers: “The US manufacturing sector remains in a demand-driven, supply-chain constrained environment, with clear signs of improvements in labor resources and supplier delivery performance Shortages of low-end materials, high commodity prices and product transportation difficulties continue to hamper consumption Global issues related to the coronavirus pandemic – worker absenteeism, short-term closures due to parts shortages, staff turnover and overseas supply chain issues – continue to impact manufacturing . “

To be continued this Wednesday for the United States, oil stocks at 4:30 p.m. and the Fed Minutes at 8:00 p.m.

Investors have just learned of the results of the ADP survey (Automatic Data Processing) on employment. According to the private human resources firm, the US economy created 807,000 jobs in the private sector (excluding agriculture) in December, largely beating the target, the highest since May.

KEY GRAPHIC ELEMENTS

Regarding the substantive technical framework, at this stage unchanged:

Since October 28 and the registration of new historic highs after those of September 07, the flagship index of technological stocks of the American stock market has systematically closed on the high points of the session, in strong volumes, which contracted only very little . The buying side, fully mobilized, does not ask any questions. An oblique straight line (drawn in black) perfectly symbolizes the basic appetite of buyers, as well as their long-term mobilization.

A court terme:

The flagship index of technological stocks on the American stock market has just achieved a fairly clear double support on its 100-day moving average (in orange), which more than ever constitutes a technical and graphic “justice of the peace”. In the immediate future, the all-encompassing bearish traced on Tuesday invites restraint.

PREVISION

In view of the key graphical 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 crossing the 15901.00 points would rekindle the purchase tension. While a break of 15000.00 points would revive the selling pressure.

DAILY DATA CHART

Nasdaq Composite: Some excitement on 10-year Treasuries (© ProRealTime.com)

©2022 News Bulletin 247

Source: Tradingsat

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