Nasdaq Composite: Tech stays the course

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(News Bulletin 247) – Large gap to be noted on Wall Street between industrial, banking and Value files in the broad sense, which have been penalized since Thursday, and growth files, mainly technological, that nothing seems to stop. The prospect of an accommodative monetary policy for many more months, supports the sector. And the scenario that remains on the table of a change at the head of the Fed would not thwart the momentum.

“The markets are going […] follow closely the nomination of the president of the Fed “, notes Vincent Boy, market analyst for IG France.” The choice of president Joe Biden should fall on the current president Jerome Powell or Lael Brainard who is currently governor of the Fed . The latter is seen as a dove and her appointment could help support the markets again in the short term. “

This assurance of an accommodating monetary policy is the key point. “If central banks are thus starting to tighten the monetary screw, the fact remains that financing conditions remain very accommodating. The start of the” tapering “phase does not mean that we have entered a phase. interest rate hike “observes Thibault Prébay, Deputy Managing Director at Financière Arbevel.

No major US figure was on the agenda on Friday. As a reminder Thursday, the Philadelphia Fed’s manufacturing index came out unexpectedly sharply up to 39.0, beating the target flat. 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. To be followed on the statistical agenda this Monday, as a priority, the consumer confidence index in the Eurozone at 4:00 p.m. and sales of second-hand homes in the United States at 4:00 p.m. also.

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

Nasdaq Composite: Tech is staying the course (© ProRealTime.com)

©2021 News Bulletin 247

Source: Tradingsat

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