The events in the Middle East have not impacted the
Nasdaq Composite as the market is likely to ignore that as long as the conflict
remains confined to just Israel and Hamas. The strong NFP report
last Friday and the recent comments from Fed members where they keep signalling
cautiousness due to elevated long term Treasury yields, should keep on
supporting the rally.
Nasdaq Composite Technical
Analysis – Daily Timeframe
Nasdaq Composite Daily
On the daily chart, we can see that the Nasdaq
Composite continues to surge to new highs after bouncing on the key support around
the 13174 level. The target for the buyers should be the downward trendline around
the 13800 level with a break higher likely leading to the cycle high. We can
expect the sellers to step in around the downward trendline to position for
another selloff and target the 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
yesterday rallied into a resistance level defined by the previous swing low and
the minor downward trendline. The sellers might be leaning on this level to
invalidate the bullish setup, but the buyers are likely to buy the dip as long
as nothing too bad happens on the fundamentals side.
Nasdaq Composite Technical
Analysis – 1 hour Timeframe
Nasdaq Composite 1 hour
On the 1 hour chart, we can see more
closely the yesterday’s rally and the pullback into the close. The buyers
should pile in around the broken trendline and the previous swing high around
the 13500 level to position for another rally into the 13800 level. The
sellers, on the other hand, will want to see the price breaking below the 13500
support to increase the bearish momentum into the lows.
Upcoming
Events
This week the market is likely to focus on the US CPI
report as that’s what might change the expectations around the next FOMC rate
decision. Today, we will see the US PPI data and later in the day the FOMC
Meeting Minutes. Tomorrow, it will be the time for the US CPI report, and at
the same time we will also get the latest Jobless Claims figures. On Friday we conclude
the week with the University of Michigan Consumer Sentiment report.