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At the upper part of the range, close by definition to a resistance level around 12,270 points, the Nasdaq Composite index should start the week on a cautious note, pending additional visibility on the negotiations in Congress on raising of the debt ceiling. As a reminder, in the absence of an agreement, the country would enter a new period of shutdown (closure), during which certain federal public services would be shut down.

“On Tuesday, President Joe Biden is expected to receive members of Congress to discuss the US debt ceiling, following the postponement of the meeting, which should take place at the end of last week. Janet Yellen still sees June 1 as the date on which the United States will no longer be able to finance the functioning of the State, if the debt ceiling is not raised”, notes Vincent Boy, market analyst IG France.

Quite a few statistical benchmarks to get your teeth into on Monday. To follow all the same the Empire State manufacturing index at 2:30 p.m., expected in the red. The dynamics of retail sales will be scrutinized tomorrow, especially since on Friday operators had to digest the very disappointing preliminary data from the consumer confidence index, as defined by the University of Michigan (U-Mich index ).

“Consumer confidence fell 9.1% amid renewed concerns about the economy’s trajectory, wiping out more than half the gains made after last June’s all-time low. While current macro data show no signs of recession, consumer concerns about the economy intensified in May alongside the proliferation of negative economic news, including the stalemate over the debt crisis,” read the statement. the press release accompanying the publication.

On this burning subject, Joe Biden is hoping for a meeting tomorrow with the leaders in Congress, with a view to agreeing on an increase in the ceiling. The challenge, formally, is simple: avoid default.

Note on the value side, for lovers of technical analysis, the structure of the consolidation of the Intuitive Surgical action (surgical robots), following the bullish runaway of April 19, in the wake of an impeccable quarterly copy.

KEY GRAPHIC ELEMENTS

The 12,270 zone is gradually asserting itself as a major resistance, under which the power of attraction of the March 29 gap intensifies. Its lower bound is worth 11,753 points; this is the very short-term objective that we identify. In the immediate term, an inflection movement below this resistance zone is anticipated. Under the aforementioned gap, it would be the 11,450 points which would then serve as a technical safeguard.

Conversely, a clear overshoot of 12,270 points would relaunch the initial upward movement. This would require validation by volumes.

FORECAST

In view of the key chart 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 a crossing of 12270.00 points would revive the tension in the purchase. While a breakout of 11904.00 points would revive selling pressure.

The News Bulletin 247 board

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

CHART IN DAILY DATA

Graphic made from the software Prorealtime



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