The market continues to march higher as the war in
Israel hasn’t spread to other Arab countries. In fact, yesterday the US intelligence has even reported that
Iran was surprised by the Hamas attack. This has weighed on Crude Oil prices
and eliminated the risk of a much bigger spike. Moreover, the US PPI report
yesterday beat expectations, but it was mainly energy driven and the market
brushed it aside as we got a big drop in Oil prices in October and even Fed’s Waller sounded
like a rate hike in November is not coming unless we get a very ugly CPI
report.
Nasdaq Composite Technical
Analysis – Daily Timeframe
Nasdaq Composite Daily
On the daily chart, we can see that after the
breakout of the consolidation around the key 13174 support, the
Nasdaq Composite surged to new highs and continues to rally with almost no
pullback towards the top trendline around
the 13800 level. That’s where we can expect the sellers to step in with more
conviction and a better risk to reward setup to position for a drop into the
lows and targeting a break below the 13174 support.
Nasdaq Composite Technical
Analysis – 4 hour Timeframe
Nasdaq Composite 4 hour
On the 4 hour chart, we can see that the price is
struggling a bit at the resistance around the 13650 level. A break above it
should see more buyers piling in and extending the rally into the top
trendline. The sellers, on the other hand, should keep on leaning on this level
with a defined risk above it to position for a drop into the lows.
Nasdaq Composite Technical
Analysis – 1 hour Timeframe
Nasdaq Composite 1 hour
On the 1 hour chart, we can see more
closely the key levels for this rally and how the break of those barriers led
to more and more bullish pressure as the buyers increased the longs into the
top trendline. If we get a pullback from the current resistance, the buyers
should lean on the broken trendline and the support around the 13500 level to
position for another rally into the highs. The sellers, on the other hand, will
want to see the price breaking below the 13500 support to increase the bearish
momentum and target a break below the 13174 support, especially if the CPI
report today surprises to the upside.
Upcoming
Events
Today we will get the most important report of the
week, that is the US CPI report. The market is likely to focus on the core
measures and react positively to lower than 0.4% monthly rate readings. At the
same time, we will also see the latest US Jobless Claims data which is an
important labour market report. Tomorrow, we conclude the week with the
University of Michigan Consumer Sentiment report.