Nasdaq Composite : Momentum indestructible ?

(News Bulletin 247) – In the absence of a noticeable reaction in the bond markets, after the US inflation figures published earlier in the week, the Nasdaq Composite index, rich in growth technology stocks, was already resuming its ascent on Thursday , by gathering 0.52% to 15,704 points, not far from its historic highs.

The index is by nature particularly sensitive to the degree of firmness of monetary policy. However, it is clear that the inflation figures published on Wednesday (consumer price indices) will have an impact on the next meeting of the Fed’s Monetary Policy Committee.

Over the month of October, and on a monthly basis, consumer prices rose 0.9%, against 0.6% expected. Excluding food and energy (elements considered the most volatile), prices gained 0.9%, against 0.6% expected according to the latest figures from the Bureau of Labor Statistics. On an annualized basis, headline inflation (the broadest base) stands at 6.2% …

“This inflation report is sure to revive the debate over the timing of the Fed’s rate hikes, with bond markets expecting to a first increase in July and a second by the end of the year, with a firming of the probabilities of rate hikes following this report “, for Vincent Manuel, Director of Investments at Indosuez Wealth Management.

The futures on the index suggest a timid upward opening, for a session that will be marked by two indicators, published simultaneously at 4:00 p.m.: the new job offers (jOLTS) and the American consumer confidence index (U-Mich) at 4:00 p.m. .

KEY GRAPHIC ELEMENTS

Regarding the substantive technical framework, unchanged:

Since October 28 and the registration of new historic highs after those of September 07, the flagship index of technology 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 raise any questions.

A court terme:

The entry into a phase of digestion, the structure of which will be instructive for the future, should be considered. We are still in the process of defining the framework, and the amplitude, of future consolidation.

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 17000.00 points would rekindle the purchase tension. While a break of 15420.00 points would revive the selling pressure.

DAILY DATA CHART

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