On the daily chart below, we can see that recently the price broke out of the key 12284 resistance but failed to keep up with the momentum as last Friday the University of Michigan report missed expectations across the board and the long-term inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term expectations surprised with a big jump.

Fed Chair Powell once mentioned that they consider those expectations, so the market reacted accordingly. The price fell back below the resistance and it’s now retesting the top of the previous range. Will we see a bounce and a rally afterwards or there’s more downside to come?

Nasdaq technical analysis

On the 4 hour chart below, we can see that the buyers leant on the red long period moving average and the top of the previous range. This week is bare on the data front with just Retail Sales scheduled for tomorrow and Fed Chair Powell speech on Friday. We are likely to see the buyers coming in more strongly if the data is benign and Powell doesn’t sound too hawkish, so watch out for those events.

On the 1 hour chart below, we can see more closely the price action on last Friday. The selloff was caused by the UMich report but late in the evening buyers showed up and bid up the price. The levels to watch are the recent high at 12364 and the low at 12212. The buyers are likely to pile in case the market breaks above the high, while the sellers should jump onboard in case the price breaks below the low.