Fundamental
Overview
The Nasdaq has been on a
sustained rally ever since the last FOMC decision with the market continuing to
price in a back-to-back 50 bps cut in November. More recently, the PBoC
surprised with strong easing measures as Chinese officials seem to have finally
decided to go bigger. The market might now looking forward to a pick-up in
global growth.
On the economic data side,
the latest US
consumer confidence surprised to the downside with worrying labour market
data, but the market quickly faded the reaction. One possible reason could be
that the data didn’t incorporate the latest Fed’s decision so the market might
want to wait a bit more to see if things pick up in the next months.
Nasdaq
Technical Analysis – Daily Timeframe
Nasdaq Daily
On the daily chart, we can
see that the Nasdaq broke above the 20000 level and extended the gains into new
highs. If we get a pullback, the buyers will likely step in around the 20K
level to position for the continuation of the uptrend. The sellers, on the
other hand, will want to see the price breaking lower to pile in for a drop
into the 19000 level.
Nasdaq Technical
Analysis – 4 hour Timeframe
Nasdaq 4 hour
On the 4 hour chart, we can
see that we have an upward trendline defining the current bullish momentum. If
we get a pullback, the buyers will likely lean on the trendline
to position for new highs, while the sellers will look for a break below the
trendline and the 20K level to pile in for new lows.
Nasdaq Technical
Analysis – 1 hour Timeframe
Nasdaq 1 hour
On the 1 hour chart, we can
see more clearly the recent price action with the strong rally overnight amid
reports of China considering a huge capital injection into top banks.
There’s
not much else we can glean from this timeframe as the buyers will look to buy
the dip on the trendline, while the sellers will look for a break lower to
start targeting new lows. The red lines define the average daily range for today.
Upcoming Catalysts
Today we get the latest US Jobless Claims figures, while tomorrow we conclude
the week with the US PCE report.