Last week, the Fed hiked by 25 bps as expected and left everything
unchanged. The market was more focused on the press conference to see if Fed
Chair Powell would hint to the next policy move. Unfortunately, Powell just
repeated that they are data dependent and that all options are on the table for
the September meeting. Since the FOMC meeting, the data has been supporting the
soft-landing narrative as the US Jobless Claims beat expectations once again and
the US PCE and the Employment Cost Index missed forecasts.
Nasdaq Composite Technical
Analysis – Daily Timeframe
Nasdaq Composite Daily
On the daily chart, we can see that the Nasdaq
Composite bounced again on the red 21 moving average and it’s
now eyeing the key 14649 resistance. A break
above that level would open the door for the all-time high, but the sellers are
likely to step in aggressively there.
Nasdaq Composite Technical
Analysis – 4 hour Timeframe
Nasdaq Composite 4 hour
On the 4 hour chart, we can see that we have a divergence with the
MACD which is
generally a sign of weakening momentum often followed by pullbacks or
reversals. In this case, the price pulled back to the trendline and
bounced as the buyers stepped in to target the breakout of the resistance.
Nasdaq Composite Technical
Analysis – 1 hour Timeframe
Nasdaq Composite 1 hour
On the 1 hour chart, we can see that we
also had the 50% Fibonacci
retracement level near the trendline, so the buyers
had some good confluence there.
This is clearly a bull market, so the sellers are likely to lean on the 14649
resistance with a defined risk above the level to target a bigger pullback or
wait for the price to fall below the trendline to pile in and extend the fall
into the next major trendline.
Upcoming
Events
This week is packed with several top tier economic
indicators. We start tomorrow with the US Manufacturing PMI and the US Job
Openings data. Moving on to Wednesday, we will see the latest US ADP report. On
Thursday, the market will be focused on the US Jobless Claims and the US ISM Services
PMI. We then conclude on Friday with the main event of the week: the US NFP
report.