(News Bulletin 247) – Statistical focal point this Tuesday on Wall Street: retail sales for the month of October have just been published by the Census Bureau. Excluding automobiles, these sales jumped at a monthly rate of 1.7%, largely beating the consensus (+ 1.0%) and making us forget a dull month of September. An indicator with a strong stock market impact in an economy where traditionally, the bulk of national wealth creation comes from domestic consumption. Result: no profit-taking expected at the opening for the Nasdaq Composite index, which remains attractive despite the latest figures on US inflation.
Following this publication in the heart of last week, “the yield curve has flattened and real rates have hit new lows,” observed César Perez Ruiz, Head of Investments and CIO at Pictet Wealth Management. “This suggests that investors remain convinced that the surge in inflation will be temporary or that they view possible monetary tightening by the Fed (justified in view of the rise in consumer prices) as a strategic mistake that would plague the recovery — or both. ” There Is No Alternative …
No wave to report on the side of the online interview between Joe Biden and Xi Jinping, the two men being careful to limit the red lines not to be crossed, on trade, human rights, and Taiwan .
Yesterday in the statistical chapter, the manufacturing index of the Fed of NY (index says Empire State) beat expectations jumping to 30.9 from 19.8 last month.
Very slight increase in yields on 10-year government bonds (the Treasuries) who regain the 1.60. Hence an estimated slowdown in the rate of rally.
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.
Positive opinion on the scale of the upcoming session.
PREVISION
In view of the key graphical factors that we have mentioned, our opinion is positive on the Nasdaq Composite index in the short term.
This bullish scenario is valid as long as the Nasdaq Composite Index quotes above the support at 15420.00 points.
DAILY DATA CHART
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Source: Tradingsat
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