Nasdaq Composite: Risk of closing on weekly lows

(News Bulletin 247) – The feelings will have been duels this week on the American growth stocks, files of which the index which interests us here abounds. Even though the Minutes, the consumer price indices – ie the main benchmarks of the last few days – seemed to be digested, the Nasdaq Composite erased in one session yesterday three sessions of gains, falling 2.51% to 14,806 points , in strong and rising volumes, greatly jeopardizing the chances of obtaining a pleasant weekly candle. Only one more session to decide, this day, which will be marked by the publication of the monthly federal report on industry, at 2:30 p.m.

But first of all, an hour before the opening of the debates on equities, retail sales have just been published, a sharp benchmark which has a place of choice on the screens of operators, as domestic consumption is THE main driver of the creation of national wealth in the United States. And these sales, in their monthly dynamics, were very disappointing. Excluding automobiles in December, they fell by 2.3%, completely missing the target.

Yesterday to be complete on the statistical front, the producer price index rose 0.2% in December (vs. 0.8% in November), and weekly unemployment benefit claims peaked at 230,000 new units .

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 has come 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

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 15900.00 points.

CHART IN DAILY DATA

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