Nasdaq Composite: The Tower of Jenga still stands

(News Bulletin 247) – The micro-reflux lasted only two small sessions on November 9 and 10, on the Nasdaq Composite index, however sensitive by nature and composition, to the outlook for monetary tightening from the Fed. The flagship index of technology stocks on the US rating gained 0.76% to 15,973 points yesterday, in trading volumes that are hardly running out of steam.

Following this publication at the heart of last week of a sharper-than-expected rise in consumer prices, while 10-year Treasuries showed some signs of nervousness, “the yield curve flattened and yields Realities have hit new lows, “observed César Perez Ruiz, Chief Investment Officer 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 …

Yesterday, statistically speaking, US retail sales for the month of October were released 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.

To follow the rough stocks at 4.30 p.m. Slight disappointment to report before the opening, with housing starts showing stable in October, below expectations.

Focus on two files in particular: Lucid Motors first, whose share soared 23.71% to $ 55.52 yesterday and Rivian Automotive (+ 15.16% to $ 172), both on a sector of the electric automobile in full market turmoil.

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 technological 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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