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Wall Street is only starting its week, this Monday being a holiday and a day off across the Atlantic (Labor Day), and the dominant feeling, once digested the NFP report on employment published on Friday, is twofold:

The market acknowledges that a gradual control of inflation is underway, and that the price/wage spiral will have been avoided, although there is still a long way to go towards normalization. But signs of a slowdown in the global economy, particularly in China, are causing a stir. In China, the country’s economic situation is the subject of concern after a slowdown in services activity last month. The PMI-Caixin services index fell to 51.8 points in August, after 54.1 in July.

Beijing may have announced support measures, particularly in the very strategic real estate sector, as well as a reduction in taxes on stock market transactions, “these measures are for the moment more akin to scoops”, analyzes Thomas Giudici , head of bond management at Auris Gestion.

“Xi Jinping, who advocates financial discipline, finds himself blocked by his desire not to fall back into the excesses of past indebtedness. To this problem is added that of the currency, the renminbi having corrected sharply against the dollar while China seeks to further push its use internationally. While China naturally has the means to support its economy through large-scale measures, it seems for the moment to be taking small steps.”

All eyes will continue to be nervously on Beijing for the next few weeks.

The Nasdaq Composite index, the flagship index of technology stocks on the American side, which ended on a stable note on Friday at 14,031 points, should open in negative territory on Tuesday, while the 10-year American rises again near the 4.24%.

KEY GRAPHIC ELEMENTS

The underlying trend, powerfully bullish, is naturally not called into question at this stage by the technical and graphic tools. However, the commitment to a broad consolidation phase, more engaging than a simple correction, is a scenario whose credibility rests on the formation of a characteristic double top in July, and by the messages sent by the candles in the very construction of this double summit: marubozusencompassing, dojis. The candle in marubozu school black Thursday 08/24, lined with a bearish engulfing combination broke the timid momentum of week 34.

Negative opinion across the upcoming session.

FORECAST

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 14400.00 points.

The News Bulletin 247 board

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

CHART IN DAILY DATA

Graphic made from the software Prorealtime

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