Yesterday, the Nasdaq Composite fell into the close ending the day negative as the market continues to consolidate awaiting better levels where to trade from and new information to price in. We are now near a key support zone and what happens here will be crucial especially if the data continues to surprise to the upside and Fed members continue to push back rate cuts. The path of least resistance remains to the upside but watch out for a breakout of the support as that could lead to profit taking and a wave of bearish bets.
Nasdaq Composite Technical Analysis – Daily Timeframe
On the daily chart, we can see that the Nasdaq Composite has been diverging with the MACD for a long time. This is generally a sign of weakening momentum often followed by pullbacks or reversals. We continue to trade inside the rising wedge, so if the price were to break below the trendline, the sellers will have much more conviction to look for new lows with the base of the wedge at 14477 being the ultimate target.
Nasdaq Composite Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that the price is near the bottom trendline where we can also find the confluence of the red 21 moving average and the 50% Fibonacci retracement level. This is where we can expect the buyers to step in with a defined risk below the trendline to position for a rally into a new all-time high. The sellers, on the other hand, will want to see the price breaking lower to position for a drop into new lows with the 15937 level as the first target.
Nasdaq Composite Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see more closely the recent price action and the bullish setup around the trendline. What happens here will likely decide where the market will go in the next few weeks as a bounce should lead to new highs and a break trigger a selloff.
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