(News Bulletin 247) – Elon Musk sent the tech sphere into a frenzy yesterday, with the Nasdaq Composite gaining 1.90% to 14,532 points, after the announcement by the police of the American Stock Exchange of his increase in the capital of Twitter to the tune of 9.20% of its float. By becoming the majority shareholder of his favorite social network, the boss of Tesla offered himself his toy. He will therefore not, as rumors have it, created his own social network. Twitter, in the process, jumped 27.12% to $49.97. The volumes, on the index, remained relatively discreet, in contraction, leaving the field open to a short phase of lateral congestion, pending on the one hand the Minutes of the Fed, tomorrow, and others share the new salvo of sanctions against Russia, after the discovery this week of massacres of civilians attributed to the Russian army in several towns on the outskirts of kyiv, including Boutcha.
On the side of the Fed (the Minutes will be published tomorrow), which for its part began its monetary shift earlier, it will be able to rely on good news on the employment front, in the sense that the last NFP report (March federal report) was good workmanship, without however showing signs of worsening tensions. This temporarily removes the specter of a price/wage spiral. Thomas Giudici notes that “job creations have once again remained sustained with a strong revision on the previous month. At the same time, the rapid rise in wages continues with a further increase of 0.4% over the month, which brings the increase to 5.6% over the year.While the strengthening of the “price-wage loop” is still the main point of attention, the new increase in the rate of participation in the labor market is good news because it is able to curb this runaway.
Regarding this monetary policy report, due on Wednesday, “the markets will be waiting for an indication of the next rate hike, which could be 50 bps, as suggested by Jerome Powell in his last speeches. The start of the reduction in the The Fed’s balance sheet could also be mentioned, although, despite the end of the asset purchase program in early March, the Fed’s balance sheet has continued to grow since then”, anticipates Vincent Boy, for IG France.
On the macroeconomic statistics side, RAS concerning the trade balance deficit for the month of February (89.2 billion dollars, relatively close to the consensus). To follow at 4:00 p.m. the PMI Services (ISM).
KEY GRAPHIC ELEMENTS
On the technical side, as long as the flagship index of technology stocks on the American side remains above 13,838 points, nothing is to be feared. This is a technical threshold easily regained, on a combination of candles in “three advancing soldiers”, from March 16 to 18. A move below 14,445 points was validated on Thursday signifying a reintegration of a trading range above 13,330 points. All against a background of divergence between prices and volumes.
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 14660.00 points.
CHART IN DAILY DATA
©2022 News Bulletin 247
I am currently a news writer for News Bulletin247 where I mostly cover sports news. I have always been interested in writing and it is something I am very passionate about. In my spare time, I enjoy reading and spending time with my family and friends.
