(News Bulletin 247) – The difference in appetite for growth stocks, particularly technological ones, still popular, and growth files, calling for more caution, will continue. Yesterday the main equity indices on Wall Street closed in “dispersed order”, the Dow Jones contracting 0.17% to 35,870 points and the Nasdaq Composite managing to grab 0.45% to 15,993 points, in close proximity of its recent historic peaks.
If the Nasdaq Composite should fare better than the Dow Jones or even the S&P 500 (broad index), the difference in performance should be notable compared to Europe, where the trading rooms are once again having to contend with measures restrictive related to the coronavirus epidemic. Austria has just decreed a new general confinement of its population, and – a first in Europe! – compulsory vaccination from February 1. Germany does not rule out new confinement either, according to Health Minister Jens Spahn.
In the statistical chapter yesterday, the manufacturing index of the Philadelphia Fed, came out with a strong surprise increase, to 39.0, beating the target flatly. On the other hand, weekly registrations for unemployment benefits were slightly disappointing. They will have had the advantage of not putting more pressure on the Fed. No macroeconomic statistical figure of major importance will appear on the agenda on the American side this Friday.
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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Source: Tradingsat
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