Yesterday, the Nasdaq Composite opened lower following a selloff caused by surprisingly high Core PCE data in the US Q1 GDP report. The market started to fade the move right at the open and eventually finished the day almost unchanged. Today we conclude the week with the US PCE report and judging by yesterday’s price action, we might see another rally at least until the new month data next week changes the sentiment.
Nasdaq Composite Technical Analysis – Daily Timeframe
On the daily chart, we can see that the Nasdaq Composite yesterday opened lower but eventually rallied all the way back to the prior day’s lows. From a risk management perspective, the sellers will have a much better risk to reward setup around the 15929 level where they will also find the confluence of the 50% Fibonacci retracement level and the red 21 moving average. The buyers, on the other hand, will want to see the price breaking higher to invalidate the bearish setup and increase the bullish bets into a new all-time high.
Nasdaq Composite Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that the price got rejected from the 21 moving average on this timeframe. Given yesterday’s price action, we might see another push to the upside, right into the 15929 resistance where the sellers will look to pile in with a defined risk above the resistance to position into new lows.
Nasdaq Composite Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see more closely the yesterday’s negative gap which was filled soon after as the market rallied for the entire trading session. Moreover, we should see a positive gap today as tech earnings after the close were much better than expected and some key stocks like Alphabet surged into new highs.
