The Fed yesterday hiked by 25 bps as expected and left the policy
statement basically 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, so as it has been for the
past few months, the data is what really matters now.
Nasdaq Composite Technical
Analysis – Daily Timeframe
Nasdaq Composite Daily
On the daily chart, we can see that the Nasdaq
Composite leant on the red 21 moving average for the latest rally towards the
14649 resistance. We may
expect the same happening again as the price is also near a previous swing high
that could act as support.
Nasdaq Composite Technical
Analysis – 4 hour Timeframe
Nasdaq Composite 4 hour
On the 4 hour chart, we can see that we a divergence with the
MACD which is
generally a sign of weakening momentum often followed by pullbacks or
reversals. In this case, the pullback should resolve near the minor upward trendline where
the buyers are likely to pile in with a defined risk below the swing support
and target the 14649 high. The sellers,
on the other hand, will want to see the price breaking below the trendline to
pile in and extend the pullback into the major upward trendline below.
Nasdaq Composite Technical
Analysis – 1 hour Timeframe
Nasdaq Composite 1 hour
On the 1 hour chart, we can see that the
price has been stuck in a tight range between the 13995 level and the 14200
one. A breakout on either side should lead to a quick move with the buyers
targeting the high in case of an upside break and the sellers targeting the
major trendline in case of a downside break.
Upcoming
Events
Today the market will be focused on the US Jobless
Claims report as the Fed is particularly attentive to the labour market
performance for its policy decisions. A big beat should support the Nasdaq
Composite as the soft-landing vibes will prevail. On the other hand, a big miss
may cause some weakness in the index as it may trigger some recessionary fears.
Tomorrow, the attention will switch to the US PCE and ECI reports with the
market likely to be more interested on the wages data.