Fundamental
Overview
The Nasdaq has been mostly
consolidating around the recent highs although it managed to rise into a new
high yesterday. The election uncertainty is keeping a lid on the bullish momentum
for now.
In fact, the election is
going to be a major event for the market with a red sweep seen as the most
bullish scenario, while a blue sweep could trigger some weakness in the short
term. In the bigger picture, the bullish trend should remain intact amid the
Fed’s easing cycle into a resilient economy.
Nasdaq
Technical Analysis – Daily Timeframe
Nasdaq Daily
On the daily chart, we can
see that the Nasdaq has been mostly consolidating around the highs although it
managed to print a new high yesterday. From a risk management perspective, the
buyers will have a better risk to reward setup around the trendline. The sellers, on the other hand,
will want to see the price breaking lower to start targeting the next major
trendline.
Nasdaq Technical Analysis – 4 hour Timeframe
Nasdaq 4 hour
On the 4 hour chart, we can
see that we now have another minor upward trendline defining the current
bullish momentum. The buyers will likely lean on the trendline to position for
new highs, while the sellers will look for a break lower to target a bigger
pullback into the major trendline.
Nasdaq Technical
Analysis – 1 hour Timeframe
Nasdaq 1 hour
On the 1 hour chart, we can
see that the previous high could now act as support. If we get a pullback, we
can expect the buyers to lean on it to position for a rally into the all-time
high, while the sellers will want to see the price breaking lower to target the
trendline around the 20500 level. The red lines define the average daily range for today.
Upcoming Catalysts
Today we get the US ADP and the US GDP. Tomorrow, we have the US PCE, the US
Jobless Claims and the US Employment Cost Index. Finally, on Friday, we
conclude the week with the US NFP and the US ISM Manufacturing PMI.