Nasdaq Composite: Easy digestion of the latest inflationary benchmarks

(News Bulletin 247) – With the relief after the publication of the consumer price indices yesterday, the Nasdaq Composite will even have managed to grab 0.23% to 15,188 points, validating a pullback on a major slant, in the immediate vicinity of the 100-day moving average (in orange), the underlying trendline which continues to flatten. The flagship index of US technology stocks is still closely dependent on the Treasuries 10 years. LT government bond yields have been in a phase of significant volatility since the Minutes the past week. They are back at a level slightly below 1.74.

Excluding food and energy (items considered volatile), US prices rose by 0.6% in December, against a target of +0.5%. It must be said that the rate of monthly rise in prices confirms its tendency to slow down. Remember that in May and July, on the same basket of products, the monthly increase was 0.8%. Asked by the Senate on Tuesday about the institution’s strategy to fight inflation in the United States, J Powell “promised to do everything possible” during his second term to fight against rising consumer prices. . The latter reaching, over one year, excluding food and energy, 5.5%…

In the immediate future, investors have just taken note of 2 figures somewhat falling short of expectations, but which will have the “merit” in the eyes of the markets of not showing signs of “overheating” on the industry front and of employment. The producer price index increased by 0.2% in December (against 0.8% in November), and weekly claims for unemployment benefits peaked at 230,000 new units.

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KEY GRAPHIC ELEMENTS

Regarding the substantive technical framework, unchanged at this stage:

Since October 28 and the registration of new historic highs after those of September 07, the flagship index of technology stocks on the American quotation has systematically closed on the high points of the session, in fed volumes, which contract only very little. . The buyer camp, fully mobilized, does not ask questions. An oblique straight line (drawn in black) perfectly symbolizes the basic appetite of buyers, as well as their mobilization over time.

A court terme:

On the other hand, the picture is much more nuanced in the short term since the bearish engulfing of November 22, after registrations of historic highs. Yesterday in solid volumes, the index came to close on the low points exactly, after continuous losses during the session, leaving behind a candle in marubozu school. The flagship index of US listed technology stocks came to test a steep bullish slant (in black), which we are placing under close watch. Its break, in progress, must still be validated by volatility and volumes. In this sense, the structure of the weekly candle, far from being completed, will be decisive.

PREVISION

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 15900.00 points would revive the tension in the purchase. While a break of 15000.00 points would relaunch the selling pressure.

CHART IN DAILY DATA

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